Stocks took a hit last week, with major averages falling over 2%. However, futures trading suggests a strong open on Monday. The S&P 500 hit five new closing highs before the recent downturn, dropping 1.6% on Friday alone. Professional money managers are waiting for better prices after multiple expansions. The markets are closely watching earnings reports and tariff negotiations.

Bond yields dropped last week, affecting mortgage rates. A drop in yields led to a rise in homebuilder stocks like D.R. Horton, which jumped 5.2%. Palantir, an AI company, reports earnings soon with revenue estimates up 38%. AMD and Eaton Corp also report this week. Consumer stocks like McDonald’s and Disney will have their say on consumer trends.

The month of August historically sees market struggles, with the worst month for Dow Jones and the second-worst for S&P 500 and Nasdaq. Retailers are gearing up for back-to-school shopping, while concerns about wildfires and hurricanes persist. Negotiations with China, Mexico, and Canada are impacting companies, with Walmart’s upcoming earnings report being closely watched.

Read more at Yahoo Finance: Stocks will try to recover their mojo