The S&P 500 saw its best week since November 2020 last week.
Ed Jones/AFP via Getty Images
Stocks weren’t doing all that much Monday as markets digest last week’s large gains and the price of oil keeps rising.
Dow Jones Industrial Average
futures have fallen 75 points, or 0.3%, while
futures were flat, and
Composite futures were down 0.1%. These moves come after the three indexes had their best weeks since November 2020.
“Futures are slightly lower following a generally quiet weekend as investors digest last week’s gains,” wrote Tom essay, founder of Sevens Report Research.
Investors, flush with cash had been in dip-buying mode last week. Markets have digested that the Federal Reserve is expected to lift interest rates seven times this year to combat inflation, a move that will drag economic growth downward. Meanwhile, some encouraging headlines on diplomatic progress between Russia and Ukraine had emerged.
Now, they’re trying to figure out what happens next. Oil might provide a clue Monday, WTI crude gained just over 3% to around $108 a barrel, and is now up more than 45% in 2022. That’s not helping a stock market that has had a difficult time seeing a sustained rally this year because surging oil prices could cause the economy to slow down, if they get too high.
Even after last week’s rally, the S&P 500 finds itself near 4,450 level, below the 4,600 level that put a ceiling on markets in February. Breaking that level could determine whether the current rally has legs or just a bear market bounce. “Near-term overbought conditions while weekly and monthly momentum remain negative create a difficult spot to chase this rally,” writes Fundstrat technician Mark Newton. “More conviction is needed.”
The picture was mixed overseas, where Frankfurt’s