Stock futures plunge after Dow posts three straight weeks of losses

U.S. equity futures plunged into trading overnight on Sunday after the Dow Jones Industrial Average posted three straight weeks of losses for the first time since September 2020.

Dow Jones futures fell 114 points, or 0.3%. S&P 500 futures fell 0.3% and Nasdaq 100 futures fell 0.2%.

Stocks struggled in September, a weak seasonal month for the market.

The Dow Jones closed Friday’s regular session 166.44 points, or 0.5%, down to 34,584.88. The S&P 500 lost 0.9% to 4,432.99 and the Nasdaq Composite lost 0.9% to close at 15,043.97.

The S&P 500 on Friday posted its largest trading volume since July 19, more than doubling its 30-day average volume. Friday coincided with the expiration of stock options, index options, stock futures and index futures – a quarterly event known as “quadruple witchcraft.”

The top three averages are negative for the month, but are still less than 3% below their all-time highs.

The much-anticipated Federal Reserve meeting in September is expected to take place this week. Fed Chairman Jerome Powell will hold a press conference on Wednesday following the two-day meeting. Investors are awaiting information on the Fed’s reduction in its accommodative monetary policy.

Powell said the so-called tapering could occur this year, but investors are waiting for more details, especially after the release of mixed economic data since Powell’s last comments.

“The factors to build a ‘wall of worry’ are present (ie China, supply chain issues, Fed policy, debt ceiling, infrastructure / security). tax bill), although the markets are not too disrupted at the moment. Normal declines and volatility are to be expected, and we would use these periods as opportunities, “said Larry Adam, chief investment officer of Raymond James, in a note.

Investors are also awaiting a number of important quarterly earnings reports this week with Adobe, FedEx, Darden Restaurants, Nike and Costco releasing their financial results.