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Futures show Wall Street recovery after the worst day of the S & P 500 in 4 months

US stock futures showed a recovery on Tuesday after the S & P 500 had its worst day in more than four months.

  • Dow Jones Industrial Average 30 Futures
    YM00,
    + 1.03%

    Increased by 385 points (1.1%) to 34,224

  • S & P 500 Futures
    ES00,
    + 0.95%

    1%, or 45 points up to 4,393

  • Nasdaq 100 Futures
    NQ00,
    + 0.91%

    1%, an increase of 145 points to 15,154

Monday, Dow Jones Industrial Average
DJIA,
-1.78%

The S & P 500 fell 614 points (1.8%) to 33970.
SPX,
-1.70%

The Nasdaq Composite Index fell 75 points (1.7%) to 4358.
COMP,
-2.19%

It decreased by 330 points (2.2%) to 14714.

What is driving the market

The story of the Evergrande of China
3333,
-0.44%
,
Real estate developers, who are expected to miss two major interest payments this week, got their hands on the market on Monday. It came the day many major Asian markets were closed due to holidays.

Marco Kolanovich, Chief Global Market Strategist at JP Morgan.

Koranovich expects it to recover as the coronavirus delta wave weakens, and companies expect to exceed their earnings expectations for the third quarter.

Wall Street analysts struggled to say that the Evergrande Group was not the moment of Lehman in China.

“The true” Lehman moment “is a crisis of a very different scale. You will need to see lender strikes in most of the financial system, a sharp increase in credit pain away from the real estate sector, and that banks do not want to face each other in the interbank financing market. And that alone would require seeing major policy mistakes on the part of the Chinese authorities, “said Barclays strategist, led by Ajay Rajadiaksha.

Concerns about the Evergrande Group are at a critical turning point, and some companies have correctly warned that September will be bumpy for US equities after a successful summer.

On Tuesday, the Federal Reserve Board of Governors will launch the first of a two-day meeting that could lead to more hawkish interest rate forecasts. Congress has been struggling to agree on a package of infrastructure spending and so far does not want to raise its debt cap.

Even after the fireworks on Monday and the loss of nine of the last 11 sessions, the S & P 500 is just 4% below record highs.

How about trading other assets
  • Hang Seng Index
    HSI,
    + 0.51%

    Nikkei 225 managed a slight advance after Monday’s rout
    NIK,
    -2.17%

    Plunge in Tokyo after vacation

  • The Stoxx Europe 600 also boosted the European market.
    SXXP,
    + 1.13%

    Initial trading increased 1.1%.

Futures show Wall Street recovery after the worst day of the S & P 500 in 4 months

Source link Futures show Wall Street recovery after the worst day of the S & P 500 in 4 months

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