Stock Market Today: Dow Futures Rise as Fears Over an Aggressive Fed Ease

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Stocks have rallied in recent sessions as investors fears have eased over aggressive Federal Reserve tightening.

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Stocks continued their momentum from a rally last week and were rising Monday with fears easing over more aggressive interest-rate increases from the Federal Reserve.

Futures for the

Dow Jones Industrial Average
rose 160 points, or 0.5%, after the index rallied 823 points on Friday to close at 31,500.

S&P 500
futures signaled a start 0.6% higher with the tech stock-heavy

Nasdaq
poised to climb 0.8%; the S&P 500 and Nasdaq surged 3.1% and 3.3% on Friday, respectively.

Overseas, the pan-European

Stoxx 600
increased 1% and Tokyo’s

Nikkei 225
gained 1.4%.

The prospect that the Federal Reserve will enact more aggressive interest-rate hikes to fight inflation — and the risk of recession it brings — has dominated investor sentiment of late, sending the S&P 500 into a bear market this year.

Stocks managed a u-turn last week following messaging from Fed Chairman Jerome Powell that the central bank will put the brakes on the pace of rate hikes if economic growth and inflation slow. This equity rally was also supported by moderating economic data.

“Markets continue to price that the worst is over for U.S. bond markets and that the end of Fed rate hikes will occur sooner as the economy in the US, and elsewhere, slow sharply in H2 2022,” said Jeffrey Halley, an analyst at broker Oanda. 

“U.S. stock markets had a banner week based on that theory, which continued Friday with Wall Street posting another day of…

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