The stock futures are lower as investors prepare to move into the official bear market for the S&P 500 on Thursday evening.
The futures for the Dow Jones Industrial Average are down 39 points, or 0.1%. The S&P 500 futures lost 0.1% and the Nasdaq-100 futures fell slightly.
On Wednesday, The S&P 500 and the Dow fell out of their intraday lows, but still fell 0.1% and 0.3%, respectively. S&P closed more than 18% from its all-time high, and would be in the official bear market if that loss increased to 20%. The Dow fell for six trading sessions.
The Nasdaq gained less than 0.1% on Wednesday, but the technology-heavy index is already in the bear market, down more than 29% from its all-time high.
The stock market has been in decline for several months, with non-profit technology stocks starting with high growth late last year and extending to companies with healthy cash flow stocks in recent weeks. Thursday, Apple bear fell on the market On its own, it became the last of the Big Tech names to be subjected to sales.
This decline wiped out the rapid gains that stocks had experienced in March 2020 due to their infectious decline.
“Large deviations from long-term price trends are used to identify the bubble. Based on this measurement we have found that US stocks are in the bubble and are now exiting it,” Citi strategist Dirk Wheeler told clients on Thursday. .
One reason why stocks have struggled in recent months is the Federal Reserve’s efforts to control prices by pushing higher inflation and raising rates. Central Bank chairman Jerome Powell told the NPR on Thursday “We could not guarantee a smooth landing“It reduced inflation without causing a recession.
Although shares enjoyed a two-week rally after the central bank’s first rate hike in March, those gains were quickly wiped out by a brutal April and sales continued in May. This week there are some signs like investor sentiment surveys and some stability in the treasury market, the market may be near, but many investors and strategists say the market should take another significant step.
“You’re actually getting this market, it’s begging down for a relief rally. But, at the end of the day, there is not really a day to surrender,” said Andrew Smith, chief investment strategist at Delos Capital. Consultants.
Developments in cryptocurrencies Bitcoin has fallen below $ 30,000 and Wall Street is worried this week as staple coins struggle to catch up.
At the forefront of economic data is the reading of Friday April import prices and the initial outlook for May consumer confidence.
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