U.S. stock futures were little changed Monday night after a losing day for the major benchmarks.
Dow Jones Industrial Average futures rose 19 points, or 0.05%. S&P 500 futures and Nasdaq 100 futures climbed 0.02% and 0.07%, respectively.
Wall Street is coming off a choppy day for the major benchmarks. The 30-stock Dow dropped 248 points, or 0.65%, in its sixth straight losing day. The 30-stock index erased most of its 2024 gains, a major reversal for an index that just weeks ago approached the key 40,000 level. The S&P 500 lost 1.2%, while the Nasdaq Composite tumbled 1.79%.
Those losses follow a rise in yields that had investors shrugging off strong earnings from Goldman Sachs, as well as hot retail sales data. The 10-year Treasury yield topped 4.6%, its highest level since November.
Elsewhere, investors were concerned of escalating tensions in the Middle East after Iran’s launch of missiles and drones at Israel on Saturday. The CBOE Volatility Index, commonly referred to as the fear gauge, closed at its highest level since October.
Still, some market observers urged investors to remain calm and stay the course, saying a resilient economy and strong labor market could continue to be supportive of equities.
“I think the reality for the markets is that we’re not going to see a sustained downturn in the U.S. equity market until we have an earnings problem, which we do not have right now, and the labor market cracks, which is not happening right now,” Lauren Goodwin, chief market strategist at New York Life Investments, told CNBC’s “Closing Bell” on Monday. “And so, I anticipate that the jitters that we’re seeing are a result of, ‘Yes, valuations are high. There’s a lot of uncertainty.’ That’s been true for months.”
Big bank earnings are set to continue Tuesday, with the release of results from Bank of America, Johnson & Johnson and Morgan Stanley. Other key reports including from UnitedHealth and United Airlines are also due to come out.
Traders will also watch for the latest reading of housing starts and building permits on Tuesday to gain insight into the health of the housing sector. Industrial production data is also set for release before the open.
Live Nation Entertainment shares slump after hours
Live Nation Entertainment shares dropped more than 7% in extended trading after the Wall Street Journal, citing people familiar, reported the Justice Department is planning to sue the parent company of Ticketmaster in the coming weeks. The antitrust lawsuit alleges Live Nation has used its power and influence in concert promotion to undermine the competition, the report said.
Live Nation shares have gained more than 6% this year.
Live Nation Entertainment
— Sarah Min
VIX, Wall Street’s ‘fear index,’ closes at highest since bull market began in late October
The VIX index closed at its highest Monday since October 30, 2023, suggesting that Wall Street expects more price swings in the days and weeks ahead.
The Chicago Board Options Exchange Volatility Index, known as a yardstick of investor skittishness ended Monday at 19.23 after rising as high as 19.46, the highest intraday since Oct. 31, 2023.
Sometimes called the “fear index,” the VIX has surged since closing at its low for the year thus far of 12.44 on Jan. 11. The VIX has touched successive higher highs for the past three trading sessions.
The last time the VIX was at levels higher than Monday was in late October, just as the current stock market rally was getting underway.
— Scott Schnipper
Stock futures open little changed
U.S. stock futures opened little changed Monday night.
Dow Jones Industrial Average futures rose 19 points, or 0.05%. S&P 500 futures and Nasdaq 100 futures climbed 0.02% and 0.07%, respectively.
— Sarah Min
