U.S. stock futures climb after markets dive to 5-week trough

U.S. stock futures gained ground on Monday, indicating Wall Street will strive to rally after falling to the lowest level since early November on recession fears.

How are stock-index futures trading
S&P 500 futures
ES00,
+0.30%
rose 15 points, or 0.4% to 3894

Dow Jones Industrial Average futures
YM00,
+0.25%
added 107 points, or 0.3% to 33235

Nasdaq-100 futures
NQ00,
+0.31%
climbed 47 points, or 0.4% to 11392

On Friday, the Dow Jones Industrial Average
DJIA,
-0.85%
fell 282 points, or 0.85%, to 32920, the S&P 500
SPX,
-1.11%
declined 43 points, or 1.11%, to 3852, and the Nasdaq Composite
COMP,
-0.97%
dropped 105 points, or 0.97%, to 10705.

The S&P 500 is down for two consecutive weeks, having fallen 5.4% over that period. It remains down 19.2% for the year to date.

What’s driving market

Equity index futures are inching up as the market tries to rally after Wall Street’s benchmark S&P 500 closed Friday at a five-week low.

Investors have become increasingly concerned of late about the recession they feel is all but inevitable given the determinedly hawkish stances of major monetary authorities, such as the Federal Reserve and European Central Bank, as they continue to battle high inflation.

Last week, alongside the Bank of England and others, the duo increased interest rates by 50 basis points to multiyear peaks, and the two stressed borrowing costs would likely go higher for longer than the market hoped.

“The Fed and ECB seem determined to leave a lump of coal in everyone’s stockings this holiday season,” said Stephen Innes, managing partner at SPI Asset Management.

“With economic data undershooting expectations, it’s not a stretch to think investors may shift their focus from inflation and the Fed to the growing impact that the Fed’s actions are likely to have on the economy in 2023,” Innes added.

The soft…

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