Stock futures fell in trading overnight Monday as markets struggled to withstand a rally rally after weeks of losses.
Futures on the Dow Jones Industrial Average fell 110 points, or 0.34%. S&P 500 futures fell 0.69% and Nasdaq 100 futures fell 1.33%.
Shares of Zoom Video rose 6% in expanded trading after sharing clear recommendations for the second quarter, while shares of Snap fell more than 28% as the company said it was preparing to meet its earnings and earnings targets for the current quarter, and warned of a slowdown in hiring.
These steps came at a time when markets were rebounding from a sharp sell-off last week that put the Dow in its first eight-week losing streak since 1923 and the S&P 500 briefly fell into bear market territory on an intraday basis.
Shares rose during the regular trading session on Monday, when the Dow jumped 618 points, or nearly 2%, after a week of sharp losses. The S&P 500 was up 1.9% and the Nasdaq Composite was up 1.6%.
These steps have made investors wonder if the rebound may hold up, or if it was another minor relief rally amid a relentless sell-off that has yet to hit bottom.
“An environment where you have such big ups and downs is a trading environment where you can feel like you made a mistake yesterday and are ripe for mistakes,” said Sophie, head of investment strategy. Liz Young told CNBC “Closing Bell: Overtime”.
Shares of banks contributed to Monday’s rise led by JPMorgan, which jumped 6.2% after the company said it would reach key targets earlier than expected thanks to rising rates. Shares of VMware rose nearly 25% on news that Broadcom is reportedly in talks to acquire a cloud service provider.
Monday’s market rally was broad, with 11 sectors positive, led by financial performance. The sector increased by 3.23% and became the best day since March 9.
Investors are expecting new home sales and a speech by Fed Chairman Jerome Powell at the summit of the National Center for the Development of American Indian Entrepreneurship on Tuesday. Nordstrom, Best Buy and Ralph Lauren must also report earnings.