Stock futures are stable in trading overnight after losing week

Stock futures were flat on Sunday after a volatile week on Wall Street, as investors contemplate a key event where the Federal Reserve could hint at the outlook for a slowing stimulus.

Futures contracts linked to the Dow Jones Industrial Average lost 20 points. The S&P 500 and Nasdaq 100 futures contracts were both little changed.

The main averages were coming out of a losing week as investors feared that the Fed’s potential decision to withdraw monetary stimulus could slow the economic recovery which is already being challenged by the spread of the Covid-19 delta variant.

The Dow blue chip fell 1.1% last week, while the S&P 500 fell nearly 0.6%, breaking a two-week winning streak. The tech-rich Nasdaq fell 0.7% during the week.

“We suspect that investor belief is called into question by the potential for future monetary policy changes, shifting growth versus value spins and a growing trajectory of new coronavirus cases,” said Craig Johnson, Technical Market Strategist at Piper Sandler, in a note.

Traders are eagerly awaiting the Jackson Hole Symposium for clues as to the Fed’s timetable to cut its bond buying program by $ 120 billion per month. The event takes place virtually on Thursday and Friday.

For August, the main benchmarks should post modest gains. The S&P 500 is up 1.1% on the month to date, while the Dow blue chip is up 0.5% and the Nasdaq is up 0.3%.

“August is a historically volatile month for the markets and this year is no different as investors are currently climbing multiple walls of concern,” said Rod von Lipsey, Managing Director of UBS Private Wealth Management. “Rising Covid-19 cases and a downward spiral in Afghanistan are creating a crisis of confidence, at a time when many investors are on vacation. “

Bitcoin traded as high as $ 49,821 over the weekend as the world’s largest cryptocurrency continues to rebound after months of weakness.