U.S. stock futures turn positive after worst week since October

February 1, 2021 0 By boss

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U.S. stock futures rose late Sunday, following Wall Street’s worst week since October.

After initially dropping more than 300 points, Dow Jones Industrial Average futures
YM00,
+0.43%

were up around 110 points, or 0.4%, as of midnight Eastern, while S&P 500 futures
ES00,
+0.52%

and Nasdaq-100 futures
NQ00,
+0.53%

both turned positive as well.

Stocks tumbled Friday, with the three major indexes posting their worst week, and overall month, since October, as volatile trading in a number of heavily shorted companies such as GameStop
GME,
+67.87%

and AMC Entertainment
AMC,
+53.65%

sparked worries of a bubble.

Read: What January’s market decline means for stock returns in 2021

“The Street is gingerly buying back those positions that got squeezed out last week after deleveraging ran roughshod over the market ecosphere,”  Stephen Innes, chief global markets strategist at Axi wrote in a note Sunday. “I think it’s still wise to remain cautious as risk sentiment is likely to spin like a top over the next  48 hours amid COVID vaccine efficacy concerns, especially with the Reddit Red Raiders’  toxic flow on traders’ minds.”

Last week, the Dow
DJIA,
-2.03%

closed 3.2% lower, the S&P 500
SPX,
-1.93%

fell 3.3% and the Nasdaq Composite
COMP,
-2.00%

was off 3.5%. On a monthly basis, the Dow lost 2%, the S&P 500 shed 1.1% and the Nasdaq Composite gained 1.7%.

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