Stock futures were high on Monday as the market tried to recover from the worst week of the Dow Jones Industrial Average since October.
Dow futures rose 205 points. S & P 500 futures rose 0.5% and Nasdaq 100 futures rose 0.5%. Overnight behavior was volatile, with Dow futures falling about 200 points earlier.
A wide group of equities was high in pre-market trading. Commodity stocks, which were hit hard last week, rebounded, with Exxon and Chevron up about 1% each in pre-market trading. Reopening play, including Royal Caribbean and Boeing, was slightly higher. Banks also seemed ready to rebound.
And large tech companies, including Alphabet and Tesla, have benefited from pre-market transactions.
US stocks fell last week as investors digested new economic forecasts from the Federal Reserve Board and feared rate hikes could come sooner than expected. Wednesday Fed Raised inflation expectations and forecast rate hikes in 2023..Jim Bullard, President of the Federal Reserve Bank of St. Louis Said CNBC Friday “Squawk Box” It was not surprising that the central bank was a little more “hawkish” and saw high interest rates as soon as 2022.
The Dow fell 3.5% last week, while the S & P 500 and Nasdaq fell 1.9% and 0.2% that week, respectively.
The US market on Monday was resilient in the face of an overnight decline in the Asian market and a sharp fall in Bitcoin.Japanese Nikkei 225 fell as much At some point on Monday, it was 4%, led by automakers Nissan and Honda. Eventually it will be about 3% lower.
Meanwhile, Bitcoin It fell by more than 6% to $ 33,000 China continued to crack down on cryptocurrency mining.
The sector that led to the economic recovery led to a fall in stock prices last week. The S & P 500’s finance and materials sector fell more than 6% this week, while energy fell more than 5% and industry fell more than 3%.
These sectors appeared to rebound on Monday. The Financial Select Sector SPDR fund was rebounding 0.3% in pre-market transactions. The Material Select Sector SPDR fund was up 0.6%.
Last week, the Treasury yield curve flattened, hitting banks and showing signs of a potential economic slowdown. Yields on short-term government bonds, such as two-year bonds, have risen — reflecting expectations of the Fed’s rate hikes. Long-term yields like 10-year bonds have receded. This shows less optimism about economic growth.
Investors are waiting to be in public on Monday from Fed members. Bullard and Dallas Fed President Robert Kaplan will effectively speak at the official Financial Institutions Forum panel at 9 am Eastern Standard Time. Federal Reserve Bank of New York Governor John Williams will speak at a mid-sized banking coalition event on Monday afternoon.
Dow futures up 200 points as stocks rebound from the worst week on average since October
Source link Dow futures up 200 points as stocks rebound from the worst week on average since October