People in New York City walk through the New York Stock Exchange (NYSE) on May 18, 2020.
Spencer Plot | Getty Images
U.S. The market saw its first back-to-back weekly decline in the month following the sell-off in tech shares after stock futures rebounded on Sunday night.
The Dow Jones Industrial Average futures traded up 158 points, or 0.6%. The S&P 500 also rose 0.6% and the Nasdaq 100 futures jumped 0.8%.
The S&P 500 was down 2.5% last week. It was the worst one-week decline in the broader-market index since June 26. For the first time since May, the S&P 500 also registered a two-week low.
That loss was largely driven by a decline in tech, the best-performing market segment so far. The S&P 500 tech sector has sunk more than 4% for its biggest weekly loss since March. Apple Pal, the largest U.S. company by market cap, fell more than 7% last week.
“Excessive technology has been destroyed since August Gust, but it has led to the development of clear and ominous topping patterns,” said Frank Capellari, executive director of Instinet, in a note.
To be sure, Sean Darby of Jefferies thinks this decline in tech may be short-lived.
Global equity strategist Darby said, “There is nothing wrong with fundamentals and earnings expectations. The further weakening of the dollar will surprise the upside, while the emergence of vaccines and / or the increase in long-term rates will prevent the impact,” said global equity strategist Darby. On the page.
Investors are coming into the new week as legislators’ hopes for a deal on the new financial stimulus have dwindled.
Senate Majority Leader Mitch McConnell, R-KY, said Friday that the prospect of Republicans and Democrats reaching a deal “doesn’t look good right now.” Earlier this month, House Speaker Nancy Pelosi, D-Calif., Said there were “serious differences” between Democrats and the White House over coronavirus aid.
Meanwhile, the number of U.S. coronavirus cases in 11 states is rising by 5% or more, according to a CNBC analysis of data from Johns Hopkins University. Dr Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said last week that the latest coronavirus data were “disruptive.”
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