S & P 500 at the edge of the bear market, stock futures rising

US stock futures bounced early on Friday, cutting into losses from the beginning of the week that pushed the S & P 500 to the top of the bear market, with the Dow Jones Industrial Average negative for eight consecutive weeks.

Futures related to the Dow rose 292 points, or 0.9%. S & P 500 futures rose about 1.1% and Nasdaq 100 futures rose 1.6%.

Futures may have been boosted after China has spent the night Reduced key mortgage benchmark rates Covid’s shutdown has hit the economy. The Federal Reserve to fight inflation and rate hikes from central banks around the world were the main causes behind the two-month stock market decline. As a result of this move, China’s Shanghai Composite Index rose 1.6%.

The rebound will come after another downbeat day on Wall Street on Thursday. The Dow and Nasdaq fell 0.8% and 0.3%, respectively. Over the past two months, the Dow has fallen 2.9% in the first eight weeks in a row since 1932, as relentless sales have taken over Wall Street.

The S & P 500 fell 0.6% on Thursday and is now about 19% below the record high set in early January. This will be the first bear market that many on Wall Street have defined as a 20% drop from a high since the pandemic decline in March 2020.

The Nasdaq and S & P 500 are declining for the seventh straight week. This week’s stock prices are under pressure as recent quarterly figures from major retailers such as Walmart and Target have expressed concern about a weakening consumer base and the ability of companies to cope with decades of high inflation. Being exposed. Target and Walmart have fallen sharply since the announcement of this week’s quarterly results.

“Many crossstreams are driving current sales, but the main reason for the recent acceleration of stock price declines revolves around concerns about U.S. consumers,” said Billstone, CIO of Glenview Trust. “. “For the first time after Covid, retailers are stuck with some excess inventories. The cost of inflation is also damaging their income.”

“Finally, there is evidence that low-end consumers are in a pinch from rising prices,” Stone said.

Ross Stores was the latest retailer to fall after making a profit. In pre-market transactions, stock prices fell by more than 28%. “After a stronger start than planned early in the period, sales underperformed for the rest of the quarter,” said CEO Barbara Rentler.

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Meanwhile, the Federal Reserve has indicated that it will continue to raise interest rates as it seeks to mitigate the recent surge in inflation. At the beginning of the week, Chair Jerome Powell said, “If it involves going beyond the widely understood level of neutrality, we will not hesitate to do it.”

This week, its harsh stance on monetary policy has raised concerns that the Fed’s actions could put the economy in recession.On Thursday, Deutsche Bank said the S & P 500 is possible Drops to 3,000 if there is an imminent recession.. This is 23% below Thursday’s closing price.

Stocks had a hard time finding their foothold for about two months. The Nasdaq is 27% below the record and the Dow is down 14% from the highest.

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S & P 500 at the edge of the bear market, stock futures rising

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