US stocks fell on Monday morning as major indexes struggled to maintain momentum from last week’s rally.
The S&P 500 fell 0.2% at 10:35 a.m. ET, quickly erasing gains after a brief rise in the open. The Dow Jones Industrial Average also fell in red, and the Nasdaq Composite fell about 0.5%.
The movements followed a sharp recovery on Friday, with the S&P 500 up 3% during the session and more than 6% for the week, its second best week this year and its first weekly rise since late May. Still, the benchmark has had its worst start since 1970.
During the last session, the Dow rose more than 800 points, or 2.7%, while the Nasdaq rose more than 3.3%, leading to weekly index gains of more than 5% and 7%, respectively.
Some Wall Street strategists hope the markets may have bottomed out.
“Bad as [this year] was for investors, the good news is the previous years, which were down by at least 15% in the middle of the year, when the last six months were higher each time, with an average return of nearly 24% “, LPL Financial chief market strategist Ryan Detrick said in a note last week.
JP Morgan strategist Marko Kolanovic also predicts that US stocks could rise by up to 7% this week as investors rebalance their portfolios at the end of the month, the second quarter and the first half of the year.
While Wall Street sentiment seems optimistic, investors expect a number of key economic reports and gains that could affect markets this week and raise hopes for a return to the test.
The quarterly results from Nike (NKE) and Micron (MU) will be closely monitored for signs of rising inventories and order delays, recently warned by Target and some other retailers, which may rekindle fears of a slowdown in the economy among Corporate America.
Traders are also facing a busy economic calendar this week, with the latest read on core PCE inflation – the Federal Reserve’s preferred measure of consumer prices, the Conference Board’s consumer sentiment survey and reports on production and housing due by Friday.
The story continues
A trader traded on the floor of the New York Stock Exchange NYSE in New York, United States, June 16, 2022. U.S. stocks plummeted on Thursday as the sharp sell-off continued on Wall Street amid growing fears of a recession. (Photo by Michael Nagle / Xinhua via Getty Images)
In motion
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Shares of Coinbase (COIN) fell nearly 10 percent after analysts at Goldman Sachs on Monday downgraded shares on the cryptocurrency exchange to Sell from neutral and lowered their target price for the shares to $ 45 from $ 70. Goldman also noted that while Coinbase recently announced it would cut 18% of its staff, those cuts would not be enough to bring the company’s costs in line with reduced sales.
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Shares of Robinhood Markets (HOOD) rose approximately 2.5% at the beginning of the session after Goldman Sachs in the same note to customers improved brokerage, a move that came about two months after the company downgraded shares to Sell. The latest change is mainly due to the assessment, after the decline of Robinhood by over 50% so far this year and nearly 30% decline since early April, according to analysts.
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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