BAC - S&P Futures Tick Higher After Dreadful Week
S&P 500 futures inched up Monday after the broad market index suffered its worst weekly losses since April last week as investors rotated out of megacap technology stocks for smaller names.
Futures for the Dow Jones Industrials gained 57 points, or 0.1%, to 40,614.
Futures for the much broader index slid 32.90 points, or 0.6%, at 5,586.25.
Futures for the NASDAQ Composite jumped 187.75 points, or 1% to 20,080.
During the previous trading week, the S&P 500 declined nearly 2% and the NASDAQ Composite fell almost 3.7%, marking their biggest weekly losses since April. On the other hand, the Dow advanced 0.7%.
A regulatory filing late Friday shows Berkshire Hathaway sold about $1.48 billion in Bank of America stock, pushing the bank's shares down by more than 1% in the premarket.
Earnings and central bank policy will also be top of mind. Traders have been pricing in nearly a 93% likelihood of the Federal Reserve cutting interest rates during its September meeting. With this in mind, investors have been selling off the big tech winners of the market rally, in favor of rate-sensitive stocks such as small caps and industrials that stand to benefit from lower rates.
On the earnings front, investors will be looking toward Verizon's quarterly results Monday morning. No major economic updates are expected until later in the week.
Traders also kept an eye on the U.S. political landscape after President Joe Biden dropped out of the presidential race on Sunday and endorsed Vice President Kamala Harris as the Democratic nominee. Since Biden's disastrous debate performance in June, many analysts were seeing an increasing likelihood of a win by former President Donald Trump in November.
In Japan, the Nikkei 225 gave way 1.2% Monday, while in Hong Kong, the Hang Seng index soared 1.3%.
Oil prices dipped 81 cents to $79.62 U.S. a barrel.
Gold prices sank $2.20 to $2,396.90.