S&P 500 futures gained 0.68% and Nasdaq 100 futures rose 0.74%. Those linked to the Dow Jones industrial average rose 182 points, or about 0.62%. The move in futures comes after five straight days of losses for stocks, with the S&P 500 on Monday closing at its lowest level in 2022. The Dow fell more than 300 points on Monday, putting it in a bear market after falling more than of 20% below its record high. Technical indicators show that the sell-off was historic. According to Bespoke Investment Group, the 10-day downtrend line for the S&P 500 has hit a record low, meaning the market’s range is at its worst level in at least 32 years. The latest round of selling appears to have several catalysts, including an aggressive Federal Reserve and rising interest rates, which in turn have roiled currency markets. On Monday, the British pound fell to a record low against the dollar, unnerving investors on both sides of the Atlantic. “Normally, U.S. investors wouldn’t care too much about that kind of thing, and especially more recently. And so that to me says that now there’s this fear that’s gripping investors a lot more than before. That in turn it will lead to a moment of capitulation where we are really at rock bottom,” said Max Gokhman, CIO at AlphaTrAI. On Tuesday, investors will get plenty of new economic data, including September consumer confidence, August durable goods orders and July home prices. Wall Street is increasingly worried that the Fed’s six-month battle against inflation will push the economy into recession.
