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Stock futures are flat after S&P 500 posts 4-day losing streak


Traders in New York City work at the New York Stock Exchange (NYSE), January 07th, 2022.

Spencer Platt | Getty Images

After a difficult start for 2022 equity markets, stock futures fell overnight on Sunday. This was despite rising interest rates.

The Dow Jones Industrial Average futures traded close to the flatline. S&P 500 futures were little changed and Nasdaq 100 futures were marginally higher.

In the first week, all three major stock indexes were down. The S&P 500 slid 0.4% on Friday for its first four-day losing streak since September. Nasdaq Composite lost 0.9% after also losing four days straight. Dow Jones Industrial Average dropped 4.81 points.

As interest rates rise, stocks, especially high-growth ones, are struggling. These are the facts 10-year Treasury yield topped 1.8% on Friday, on a run after closing 2021 at the 1.51% level.

Chris Hussey, Goldman Sachs’ Friday note stated that trading attention shifted to value and pro-cyclical stocks as the 2022 year began. Investors were digesting a steeply higher interest environment.

These rising rates are coming as the Federal Reserve indicated it may reduce its easy monetary policies more aggressively than many expected. Minutes of Wednesday’s Fed meeting showed that central banks are planning to decrease its balance sheets and increase rates.

Key inflation reports are being viewed by investors in the coming week. Tuesday’s release of the consumer price and Thursday’s release of the producer price is scheduled.

Federal Chair Jerome Powell is scheduled to testify Tuesday at his nomination hearing before a Senate panel, while the hearing on Fed Governor Lael Brainard’s nomination to the post of vice chair is set for Thursday.

Delta Air Lines announces earnings Thursday. Financial heavyweights JPMorgan Chase (Citigroup) and Wells Fargo publish quarterly results Friday.