After Wall Street’s turbulent month, Wall Street suffered steep losses and investors struggled to adjust to the Federal Reserve’s shift in policy, stock futures fell overnight Monday.

Futures of the Dow Jones Industrial Average fell 70 points. S&P 500 futures and Nasdaq 100 futures both traded 0.3% lower.

Although stocks rallied Monday on tech-driven gains, the major averages suffered another brutal month with wild swings in prices. The S&P 500 and the Nasdaq Composite posted their worst months since March 2020 at the depth of the pandemic, down 5.3% and 8.9%, respectively. It was also the S&P 500’s biggest January decline since 2009. Blue-chip Dow dropped 3.3% in January.

Jan’s selling was caused by the central bank signaling its willingness to tighten monetary policy. This includes raising interest rates multiple time this year to control inflation which is at the highest point in almost four decades. Investors fled growth-oriented technology shares that are sensitive to increasing rates.

As investors deciphered Fed messaging regarding its policy pivot, volatility surged. At one point last week, the S&P 500 dipped into correction territory on an intraday basis, briefly down 10% from its record high. Large-cap benchmark S&P 500 fell 6.3% from its record high due to the recent rebound. The tech-heavy Nasdaq, however, is in correction. Its last high was 12% lower than its peak.

Many Wall Street strategists remind investors that bull markets are subject to corrections. Since 1950, there have been 33 S&P 500 corrections of 10% or more since 1950, and the median episode has lasted about five months, according to Goldman Sachs.

Chris Haverland from Wells Fargo, global equity strategist said that the latest market decline does not indicate a collapse or end to this bull market. “We believe that corporate earnings and economic growth will be strong this year and that the Fed will not reduce monetary policy too much.

Expect a rush of earnings reporting this week from key companies, setting the stage for February. Exxon Mobil, Starbucks, AMD (and Alphabet) will release numbers prior to the Tuesday bell.

So far, of the 172 companies in the S&P 500 that have reported earnings to date, 78.5% topped analysts’ estimates, according to Refinitiv.

In a note, Keith Lerner (chief market strategist, Truist) stated that “we still expect solid, but more modest, gains in markets this year,” and added, “especially given the transition to monetary policy.”