Dow Futures Drop More Than 500 Points as Market Sell-Off Continues with Yields on the Rise

Tiger Newspress2022-05-09

Stock futures fell early Monday, as traders tried to find their footing after a dramatic week of trading.

Futures tied to the Dow Jones Industrial Average dropped 550 points, or 1.68%. S&P 500 futures fell 2.05%, while those for the Nasdaq 100 lost 2.55%.

Energy stocks fell broadly in the premarket as U.S. oil futures slid more than 2% to $107.18 per barrel. Marathon Petroleum shares dipped 3% before the bell, and Schlumberger slipped 2.1%.

Big Tech names such as Meta Platforms and Alphabet were also down more than 2% each, while Amazon, Apple and Netflix traded more than 1% lower.

Wall Street is coming off a wild week, as investors weighed the prospects of rising interest rates against the potential of slower economic growth.

Last week, the Nasdaq Composite lost 1.54%, while the S&P 500 and Dow dropped 0.21% and 0.24%, respectively. It was the sixth straight losing week for the Dow, and the fifth straight for the other two major indexes.

While the cumulative moves for the week were not out of the ordinary, some of the day-to-day swings were eye-popping. The Dow had its best day since 2020 on Wednesday, but then erased all those gains and more on Thursday.

The short-lived Wednesday rally came after Federal Reserve Chair Jerome Powell said the central bank was not considering a 75-basis-point rate hike at upcoming meetings. Stocks and bonds rallied following that comment but reversed course on Thursday.

Billionaire hedge fund manager David Tepper told CNBC’s Scott Wapner on Friday that Powell’s statement was an “unforced error” that contributed to market volatility.

First-quarter earnings season is slowing down, but there are several notable reports before the opening bell on Monday, including Palantir and vaccine-makers BioNTech and Novavax.

In other corporate news, Ford was looking to sell 8 million shares in Rivian Automotive over the weekend, sources told CNBC’s David Faber.

Investors will also be keeping an eye on the war in Ukraine. U.S. first lady Jill Biden made a surprise visit to the country on Sunday. The U.S. and Group of Seven countries announced that they would increase short-term financial support for Ukraine as the war with Russia nears the three-month mark.

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