US stock market turns positive after worst week since October

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FUTURE MOVERS

US futures rose late Sunday after Wall Street’s worst week since October.

After falling more than 300 points initially, the Dow Jones industrial average futures contract rose about 110 points, or 0.4%, from the midnight Eastern, while S&P 500 futures and Nasdaq-100 futures also turned positive.

Video: US futures futures show lower open as volatility continues (CNBC)

US futures futures open lower as volatility continues

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FOLLOWING

The stock tumbled on Friday, with the three main indices having their worst week, and an overall month since October, as volatile trading in a number of sharply shortened companies such as GameStop and AMC Entertainment caused a bubble.

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“The Street is buying back the positions that were depleted last week after the debt reduction spilled over the ecosystem of the market,” Stephen Innes, chief global market strategist at Axi, wrote in a note on Sunday. ‘I think it’s still wise to remain cautious, as risk sentiment is likely to turn like a peak in the next 48 hours, amid worrying COVID vaccine efficiencies, especially with the toxic current of the Reddit Red Raiders in traders ‘minds.’

Last week, the Dow closed 3.2% lower, the S&P 500 fell 3.3% and the Nasdaq Composite fell 3.5%. On a monthly basis, the Dow lost 2%, the S&P 500 shook 1.1% and the Nasdaq Composite 1.7%.