US stock futures rose late Sunday after Wall Street’s worst week since October.
After initially dropping more than 300 points, the Dow Jones Industrial Average futures fell YM00,
rose about 110 points, or 0.4%, from midnight Eastern, while S&P 500 futures ES00,
and Nasdaq-100 futures NQ00,
both also turned positive.
Stocks plummeted Friday, with the three major indexes showing their worst week and full month since October as volatile trading in a number of heavily short-held companies, such as GameStop GME,
and AMC Entertainment AMC,
sparked concerns about a bubble.
Read: What January’s market decline means for stock returns in 2021
“The Street is cautiously buying back those positions that were squeezed out last week after deleveraging ruined the market’s ecosphere,” Stephen Innes, Axi’s chief global market strategist, wrote in a note Sunday. “I think it’s still wise to remain cautious as risk sentiment is likely to turn at a peak over the next 48 hours due to concerns over the efficacy of the COVID vaccine, especially with the toxic flow of the Reddit Red Raiders in the heads of merchants. ”
Last week the Dow DJIA,
3.2% lower closed, the S&P 500 SPX,
fell 3.3% and the Nasdaq Composite COMP,
was off 3.5%. On a monthly basis, the Dow lost 2%, the S&P 500 lost 1.1% and the Nasdaq Composite 1.7%.