Stock futures rose slightly on Tuesday night as Wall Street turned the page to another month.
Futures linked to the Dow Jones Industrial Average added 197 points, or 0.6%. Those in the S&P 500 rose 0.5%. Nasdaq 100 futures gained about 0.5%.
The move in futures came after a bearish day for stocks, with the Dow down 222.8 points, or 0.7%, in a choppy trading session. The S&P 500 and the Nasdaq Composite fell 0.6% and 0.4%, respectively.
For the month of May, the Dow and S&P 500 finished flat, after last week’s sharp rally undermined the indices’ long losing streaks. The Nasdaq Composite underperformed, shedding more than 2%.
With the first-quarter earnings season nearly complete and the Federal Reserve clearly signaling its intentions to hike rates for its next two meetings, stocks could struggle to find direction over the summer.
“It’s best to wait and see how the next quarter plays out. When we get to the end of July, we’ll have a better picture. Until then, I think we’ll see a very choppy market trending down.” more in a bear market,” said Max Gokhman, chief investment officer at AlphaTrAI.
One potential source of optimism for markets overnight is Salesforce, whose first quarter results beat expectations. The stock rose more than 9% in extended trading.
On Wednesday, investors will get an updated look at manufacturing and construction spending data. The first day of June also marks the start of the Fed’s plan to reduce its balance sheet, which has ballooned to almost $9 trillion during the Covid pandemic.