Stock futures are flat following a down week on Wall Street

• S&P 500 futures and Nasdaq 100 futures were both flat.
• The Dow down 0.9 percent for the ninth time in ten weeks, while the S&P 500
• Nasdaq Composite slid 1.2 percent and 1 percent, respectively, for their eighth losing week in nine.

After a bad week, stock futures were little changed in overnight trading Sunday as investors continued to wager that the Federal Reserve will tighten monetary policy forcefully to confront rising inflation.

Dow Jones Industrial Average futures rose 30 points. S&P 500 futures and Nasdaq 100 futures were both flat.

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The nighttime action came after another disappointing week for investors, with the major averages losing modestly. The Dow down 0.9 percent for the ninth time in ten weeks, while the S&P 500 and Nasdaq Composite slid 1.2 percent and 1 percent, respectively, for their eighth losing week in nine.

Investors have been concerned that the central bank may raise interest rates too quickly and too dramatically, sparking a recession. Recent statements from Fed policymakers suggest that rate hikes of 50 basis points — or half a percentage point — are probable at the June and July meetings.

Despite predictions of an economic downturn and the blazing speed of inflation, the United States added 390,000 jobs in May, which was better than projected. Some investors believe the robust hiring numbers will pave the path for the Fed to maintain its aggressive stance.

“For now, the market sees a Federal Reserve trying to navigate a painful and bumpy road, yet trying to find a soft exit,” said Quincy Krosby, chief equity strategist at LPL Financial. “And the market finds itself between wanting to believe in the rallies but not believing that the Fed can negotiate a soft landing.”

Investors will be looking for the consumer price index data for May, which is scheduled for release on Friday morning. The key inflation indicator is projected to be slightly lower than in April, which some may read as indication that inflation has peaked.

The stock market has had a tumultuous year, with key averages falling by double digits from their all-time highs. The S&P 500 is down 14.7 percent from its all-time high set in January. Last month, the equities benchmark briefly entered bear market territory.

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“The second half of 2022 is going to be a roller coaster ride for investors unless the Fed is able to bring inflation under control without a hard landing,” said Peter Essele, head of portfolio management at Commonwealth Financial Network. “Most investors seem to be wagering on a crash-and-burn scenario at this point as recessionary fears abound, and equity markets fail to develop any sort of positive momentum.”

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