Stock futures fall slightly to start trading in August, with the market coming out of the best month since 2020

Equity futures fell slightly after the market’s best month since 2020 as investors look ahead to another week of key earnings reports and economic data.

Dow Jones Industrial Average futures fell 67 points, or 0.2%. S&P 500 futures lost about 0.2% and Nasdaq 100 futures fell 0.3%.

On Friday, all the major indices gained, posting winning weeks and closing out the best month of the year yet, and then some. The Dow gained 6.7% in July, while the S&P 500 gained 9.1%. The Nasdaq Composite rose 12.4% as investors rushed to the tech stocks that were most beaten during this bear market. For each index, July’s performance was the best since 2020.

“We are seeing a relief in the stock market as pessimism has reached extreme levels and longer-term interest rates have fallen again,” said Chris Zaccarelli, chief investment officer of the Independent Advisor Alliance.

“We think the rally will last until later in the summer, but as stock prices bounce back and it becomes increasingly clear that we are heading for a more typical recession (e.g. one with higher unemployment and nominal GDP close to zero or negative). drops), markets will have another sell-off,” he added. “But until then, enjoy the rally as it will probably take a lot of people by surprise.”

This week, investors have more economic data and corporate earnings to digest. On Monday, companies like Activision Blizzard, Devon Energy, Loews and more are reporting gains. Later in the week, Uber, Caterpillar, Starbucks, Eli Lilly, Amgen and others also scheduled reports.

In addition, Friday’s non-farm payrolls report from the Bureau of Labor Statistics will provide more insight into the strong job market. So far this year, solid job growth has prompted economists to say the US is not currently in a recession, even with two consecutive quarters of negative GDP.

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