US stocks are set for another miserable day. But…

US stock futures were set to open sharply lower for the third straight day after massive routs that plunged stocks close to a bear market. But there was a silver lining – maybe.

US stock futures were set to open sharply lower for the third straight day after massive routs that plunged stocks close to a bear market. But there was a silver lining – maybe. Futures on Monday morning were way off their lows from overnight, even after a historic rout in Asia and massive losses in Europe. That suggested that some of the worst selling may be over. At least for now. Dow futures were down 800 points, or 2.1%. The S&P 500 was set to open down 2.4%, and Nasdaq futures were 2.7% lower. Although those declines were sharp and significant, they were roughly halved from their low point Sunday night. The S&P 500 was at one point set to open in bear-market territory – a drop of 20% from a recent peak – after hitting a record high less than seven weeks ago, on February 19. That would be the second-fastest peak-to-bear market shift in history (the fastest occurred during the 2020 pandemic). Investors may be sensing a buying opportunity. With all the recent and rapid selling, stocks are getting cheap: They’re trading at a historically inexpensive 15 times future earnings projections. That could help markets rebound if investors believe stocks are oversold. “We are getting close to a bottom,” said Demmert. “The fact that stocks have dropped so significantly in these deep intraday moves is a clear sign of indiscriminate and fear-based selling. When this happens, we tend to soon see significant rallies.”