Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading on February 01, 2023 in New York City.
Michael M. Santiago | Getty Images
U.S. equity futures were little changed Sunday evening after the major averages posted their biggest weekly losses of the year and ahead of another big week in retail earnings.
Futures tied to the Dow Jones Industrial Average slipped 16 points, or 0.04%. S&P 500 futures eased 0.01% and Nasdaq 100 futures dipped slightly below the flat line.
The major averages Friday ended the day lower and posted their biggest weekly declines for 2023. The Dow finished lower by 3%, its fourth down week in a row. The S&P 500 lost 2.7% and the Nasdaq Composite fell 3.3% for the week.
Stocks sank Friday and Treasury yields jumped following a bigger-than-expected increase in the latest reading for personal consumption expenditures, the Federal Reserve’s preferred inflation gauge.
The early 2023 rally seems to be fading as investors absorb the minutes of the latest Fed meeting, which reiterated the central bank’s tough stance on inflation, as well as recent comments from Fed officials cautioning interest rates could rise higher and for longer than anticipated.
“As we head into a seasonally weak period, with bets rising that the Fed may go with a 50bps increase instead of a 25bps in March, though still a minority opinion, the short-term market risk remains to the downside despite three straight weeks of losses,” said Louis Navellier, chairman and founder of growth investing firm Navellier & Associates. “The bears are dusting themselves off after getting sacked in January.”
In the week ahead, investors will be looking for clues about how inflation is affecting consumers and businesses amid a handful of economic data reports and corporate earnings. Durable goods orders are due out Monday morning. Consumer confidence and the ISM manufacturing survey are also on deck in the coming week.
In earnings, just 6% of the S&P 500 will report…
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