Nasdaq futures fall on Monday, head for fifth-straight decline

cnbc.com:

Stock futures moved lower early Monday after a rocky start to 2022 for equity markets as interest rates rise.

Futures tied to the Dow Jones Industrial Average were down 41 points. S&P 500 futures slipped 0.25% and Nasdaq 100 futures dropped 0.5%. The S&P 500 and Nasdaq Composite are coming off four straight days of losses, while the Dow has retreated in three consecutive sessions.

The rough start to the year for stocks has come as interest rates have spiked. The benchmark 10-year Treasury yield was near 1.77% on Monday morning after ending the year near 1.51%. On Sunday, Goldman Sachs said it expected the Federal Reserve to hike rates four times in 2022.

Investors readied for a big week that will include key inflation data as well as a confirmation hearing for Federal Reserve Chairman Jerome Powell. Earnings season also kicks off this week. The S&P 500 is expected to show a growth rate of 21.7%, which would be the fourth straight quarter above 20%, according to FactSet.

Canaccord Genuity strategist Tony Dwyer said investors should be prepared for volatility in the opening months of the year but a strong earnings season could support the market.

«Inflation is higher than expected, the Fed has signaled three rate hikes this year (the market has started to price in the possibility of four), the Omicron variant is again throwing global growth into question, and the supply-chain constraints remain an important issue,» Dwyer said in a note to clients. «Although the uncertainty surrounding these formidable challenges has created volatility, ultimately the market moves with the direction of EPS, which should remain positive until money availability shuts down by the Fed becoming too tight.»

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