Stock futures fell after a major market reversal to begin in May

US stock futures fell Monday night after the major averages made a major reversal to start the month.

Dow Jones Industrial Average futures were down 59 points, or 0.2%. S&P 500 and Nasdaq 100 futures were down 0.2% and 0.3%, respectively.

Earlier in the day, the major averages posted a wild ups and downs session with the Nasdaq Composite up 1.63% late in the day, despite dropping 1.07% earlier in the day. The S&P 500 rose 0.57% after hitting a new low in 2022 earlier in the session.

Meanwhile, the Dow Jones Industrial Average rose 84 points, or 0.26%. At session lows, the Dow was down more than 400 points.

These moves come on the back of a tough month in April for stocks. April was the worst month since March 2020 for the Dow and S&P 500. It was the worst month for the Nasdaq since 2008.

The benchmark 10-year Treasury yield also rose to a new high on Monday. bond yield reached 3.01% during the sessionthe highest point since December 2018.

“I think it’s really hard trying to pick bottoms in the market or pick tops in the market,” Tim Lesko, principal and senior wealth advisor at Mariner Wealth Advisors, said Monday on CNBC’s “Closing Bell.” “I think what we’re seeing is that in the long run, we have very high equity allocations, people are starting to rebalance and there is some competition for stocks now in the market.”

Wall Street is largely anticipating a 50 basis point rate hike at this week’s Federal Reserve meeting. Some investors believe that expectations of a strong monetary tightening from the central bank have already been priced in the markets.

“With fiscal conditions tightening as they are, we think the Fed is going to be a little more dovish than the market is expecting,” Eric Johnston, head of equity derivatives and cross-asset products at Cantor Fitzgerald, said Monday on CNBC’s “Shutdown Bell” program. . “

The Federal Open Market Committee will release a statement at 2 PM ET on Wednesday. Fed Chairman Jerome Powell is expected to hold a press conference at 2:30 pm.

A number of consumer-oriented companies are still reporting earnings this week. Avis Budget shares jumped more than 6% during the extended trading period after the auto company beat earnings expectations in net profit. The pent-up demand for travel prompted investors to rent cars from Avis Budget despite the higher prices.

Chegg’s stock price fell nearly 30% during extended trading after the textbook company issued weak guidance for the full year despite beating earnings expectations.

Brands International RestaurantAnd Pfizer And Paramount Global To report earnings before the bell on Tuesday. AirbnbAnd AMDAnd Lift And Starbucks It is expected to report earnings after the bell on the same day.

Traders will also watch the latest reading of the Job Opportunity and Employment Turnover (JOLTS) data expected at 10 AM ET on Tuesday. A report on auto sales for April is also expected on Tuesday.