US Stock Market Futures Right Now: After a spectacular performance in July, the US stocks are looking to start on a weaker note. US stock futures are trading lower as the market could be waiting for the next set of inflation numbers in August. Dow futures, S&P 500 futures, and Nasdaq Composite futures are down by 0.15 percent, 0.27 percent, and 0.16 percent respectively on Monday morning.
The stock market recovery from the lows of June 2022 has been impressive so far. S&P 500 gained almost 13 percent from the lows of around 3666 seen in mid-June and is currently around the 4130 levels. S&P 500 started the year at around 4800 and is down by almost 15 percent since then.
Nasdaq 100, the tech-heavy index comprising some of the top names in the US such as Facebook, Google, Amazon, and Apple among others, is down over 20 per cent YTD. From the June lows, Nasdaq 100 is now up by almost 13 per cent while the Russell 2000 index of stocks with smaller market capitalizations has risen 14%.
US fed is on a mission to control inflation by hiking rates. In 2022 so far the rates have been hiked by 2.25 per cent. With rising rates, comes the risk of the economy slowing down as the recessionary fears are already underway. Investors are expecting that amidst recessionary risk, the US Fed may not be as aggressive to tame inflation as it would have been in a growing economy. This probably spurred a July rebound in stocks.
Some of the top US companies announcing their earnings on Monday include – HSBC Holdings, Mitsubishi UFJ Financial Group, Activision Blizzard, Itau Unibanco Banco Holding, Williams Companies, Devon Energy Corporation, Aflac Incorporated, Simon Property Group, Global Payments, ON Semiconductor Corporation, Monolithic Power Systems, Diamondback Energy (FANG), CF Industries Holdings. US construction spending, ISM manufacturing data flow in on Monday.
Till the time the inflation data shows a cool-off, the risk of the markets sliding down exists. Whether the July stock market rally will sustain in August and the months ahead remains to be seen.