Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures, heading into a massive week of earnings from Apple to Tesla as well as a key Federal Reserve meeting. Bitcoin and other cryptocurrencies continued to sell off over the weekend.
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The stock market correction took a firm hold last week, with the major indexes suffering sharp losses and breaking several key support levels. Even sectors of strength, notably financials, came under heavy pressure. So far bulls have made only momentary charges, with investors quick to sell rebounds instead of buying the dip. It’s a time to be heavily defensive.
Tesla stock and Dow Jones giants Apple (AAPL), Microsoft (MSFT) and Caterpillar (CAT) are on tap this week, along with dozens of other quality companies. But the main event will likely be the Federal Reserve meeting on Jan. 25-26.
The Fed meeting announcement Wednesday afternoon and Fed chief Jerome Powell’s news conference could set the tone for the stock market and Treasury yields for weeks to come. The Fed is expected to continue its accelerated bond taper, staying on track to end asset purchases by mid-March.
But the real issue is what happens next. Fed chief Powell will likely offer commentary on the timing and pace of interest rate hikes and balance sheet reductions. Talk of reducing the balance sheet, and at a fast clip, has been a big reason why the 10-year Treasury yield has spiked and the stock market has entered a correction.
Tesla (TSLA) and Microsoft stock are on IBD Leaderboard. MSFT stock is on the IBD Long-Term Leaders list. Tesla stock is on the IBD 50 list.
The video embedded in this article discusses the market correction in depth, while also analyzing Apple stock, UnitedHealth (UNH) and J.B. Hunt Transportation Services (JBHT).
Dow Jones Futures Today
Dow Jones futures open at 6 p.m. ET, along with S&P 500 futures and Nasdaq 100 futures.
Bitcoin continued to sell off along with other cryptocurrencies. The Bitcoin price plunged to about $35,000 after cracking $40,000 on Friday. It peaked at $68,990.90 in early November.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live
Coronavirus News
Coronavirus cases worldwide reached 350.68 million. Covid-19 deaths topped 5.61 million.
Coronavirus cases in the U.S. have hit 71.7 million, with deaths above 888,000.
Coronavirus cases in the U.S. are falling, albeit from extremely high levels. New York and other states hit early by the omicron Covid variant are leading the decline. Deaths have picked up in the past few weeks, but not nearly as much as new cases.
Stock Market Correction
The market correction took hold last week and didn’t let go, with the major indexes falling every day of the holiday-shortened week.
The Dow Jones Industrial Average tumbled 4.6% in…
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