Home Finance News Stock futures fall after Wall Street notches its best week since June

Stock futures fall after Wall Street notches its best week since June

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Traders on the floor of the NYSE, Oct. 21, 2022.

Source: NYSE

U.S. stock futures fell Monday after the three major averages notched their best week since June.

Futures tied to the Dow Jones Industrial Average lost 74 points, or 0.2%. S&P 500 futures and Nasdaq 100 futures shed 0.3% and 0.4%, respectively.

Tesla shares were under pressure in the premarket, after the company said it would lower electric vehicle prices in China.

Adam Crisafulli of Vital Knowledge pointed to a sharp sell-off in the Hong Kong market as a pressure source for futures in early trading.

“The horrible price action in Hong Kong was a large factor behind the US pullback, as the Hang Seng tumbled ~6.4% following the conclusion of China’s National Congress (Xi tightened his grip further, eliminating all opposition and moderating voices, signaling to markets there won’t be any change in direction on economic, tech, or COVID policies),” Crisafulli wrote.

The moves come after yet another volatile week for stocks as third-quarter earnings season heats up. On Friday, the Dow gained more than 748 points, or 2.47%. The S&P 500 and the Nasdaq Composite rose 2.37% and 2.31%, respectively. That added to gains from earlier in the week. The S&P 500 and Dow gained 4.7% and 4.9%, respectively, while the Nasdaq rose 5.2%.

So far, earnings reports have had mixed results for stocks. On Friday, bank stocks Goldman Sachs and JPMorgan Chase gained more than 4% after reporting results. But not all results have been solid — Snap shed 28% after reporting an earnings miss.

There are more big earnings reports on deck in the coming week, including tech giants such as Apple, Alphabet, Amazon and Microsoft. Wall Street will also be watching for more inflation data — on Monday, the October manufacturing and services purchasing managers indexes will be released.

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