U.S. stock market futures moved higher in overnight trading on Sunday following the Nasdaq Composite Index’s worst month since 2008. The index was affected by increasing rates, rampant inflation and low earnings from large technology companies.

Futures contracts linked to the Dow Jones Industrial Average increased 89 points. S&P 500 futures and Nasdaq 100 futures both added 0.2%.

Friday’s fall in major averages was a further acceleration of April’s losses. The Dow lost 939 points in the session. This brings its weekly loss to 2.5%. The Dow’s five-straight week of losses was recorded by the benchmark 30 stock index.

The S&P 500 declined 3.63% on Friday, its worst day since June 2022, and posted its fourth-straight negative week for the first time since September 2020. After falling 4.2% Friday, the Nasdaq posted its fourth consecutive week of losses. Both the Nasdaq and the NASDAQ registered their lowest close levels for the year.

Quincy Krosby (chief equity strategist, LPL Financial) stated that “This is a classic traders’ market because spikes in volatility are increasingly bearish headlines resonate.”

The Dow and S&P 500 are coming off their worst month since March 2020, when the pandemic took hold. The Dow finished April 4.9% lower, while the S&P tanked 8.8%.

Nasdaq Composite was tech-heavy, with a plunge of 13.26% in April. This is its worst month in eight years. It is the result of poor performances by tech giants such as Amazon, Netflix, Meta Platforms.

“[D]Krosby stated that disapointing guidance by technology giants Amazon, Apple, and Google have increased concern about a Fed becoming more hawkish, along with intractable supply chains issues and rising energy costs making the possibility of a Fed’soft landing” more difficult.

Netflix’s stock is down 49%, while Meta lost 24%, 10.8% and Meta 14%, respectively. The tech stocks that have suffered the most are those with high valuations. Their promise of growth and future profits begin to seem less appealing in an environment where rates rise.

Investors will be looking forward to Wednesday’s statement by the Federal Open Market Committee on Monetary Policy. At 2 p.m., the decision will be made public. ET. Federal Reserve Chairman Jerome Powell will hold a press conference at 2:20 p.m.

Charlie Ripley is senior investment strategist at Allianz Investment Management. He stated that investors have become increasingly concerned by rising cost pressures as well as uncertain outlooks coming from some of the most prominent technology companies. Investors are unlikely to feel comfortable anytime soon, with investors expecting the Fed to announce a 50-basis point increase next week.

A key indicator in the economy will be released Friday, when the April jobs report will be published.

While earnings season is more than halfway over, many companies have yet to report their results.

Expedia and MGM Resorts, Pfizer as well as Airbnb, Starbucks, Lyfts, Marriott, Yum Brands (Uber eBay), TripAdvisor, Expedia are just a few of the companies represented.

Of the 275 S&P 500 companies that have reported earnings so far, 80% have beat earnings estimates with 73% topping revenue expectations, according to data from Refinitiv.