US stock futures opened slightly higher ahead of a busy week of Federal Reserve interest rate decisions, employment data and Apple earnings.
S&P 500 futures were up 0.3%, while Nasdaq 100 futures were up 0.4%. Dow Jones Industrial Average futures were up 0.1%.
The S&P 500 fell into correction territory last week, losing 2.5% for the week and down 10.6% from its 2023 high. The benchmark is down 4% for October, on track for its third consecutive negative month, which would be the first such streak since 2020 when the pandemic hit.
The Federal Reserve’s decision looms on Wednesday, with the central bank widely expected to keep its benchmark interest rate unchanged. With rising interest rates the main culprit behind the stock market correction, investors will be hoping the Fed signals that it may be done raising rates. Traders expect the Fed to be done raising rates until at least 2023.
The 10-year Treasury yield jumped above 5% at the start of last week, but closed at 4.84%. Friday will bring the October jobs report, with investors hoping for some slowing in the labour market that will allow the Fed to feel comfortable remaining on hold for the rest of the year.
Apple will report earnings after the bell on Thursday. The largest member of the S&P 500 is in a correction of its own, down 15% from its 52-week high.
The sell-off has centred on the Nasdaq and tech stocks, which investors believe would be hit hardest by rising interest rates. The Nasdaq Composite is down more than 12% from its 2023 high, firmly in correction territory. The Nasdaq and Dow, along with the S&P 500, are heading for their third consecutive negative month. Disappointing recent earnings from big tech FANG stocks, such as Google parent Alphabet, have contributed to the sell-off.
“The FANG didn’t do well in earnings this week and it really took some of the support out of the stocks,” Tom Lee, co-founder of Fundstrat Global Advisors, said on CNBC on Friday.
“Do I think the FANG thesis has changed or broken? I mean, I don’t think so. To me, if somebody hasn’t owned FANG all year, this is an opportunity to get in.”
