Stock futures in the United States climbed marginally, signaling that the market is about to recover after a slow trading week in which key U.S. indexes fell.
On Monday, the DJIA futures index rose 0.8 %. Contracts for the Nasdaq-100, a tech-focused index, rose by 1.3 percent. In the wake of statistics showing that hiring growth slowed in May, major U.S. indexes dipped on Friday, even though businesses still created a solid 390,000 positions.
Investors are keeping a tight eye on economic statistics for signs of the Federal Reserve’s interest rate-hiking course. This year’s volatility in global markets has been fueled by fears that the Federal Reserve would rapidly increase interest rates, which might lead to a recession.
In recent weeks, however, trade has been more subdued as investors prepare for upcoming central bank decisions and important economic reports. A 0.9 percent drop in the Dow’s weekly move was the weakest in roughly a month. Last week, the S&P 500 fell by 1.2%, while the Nasdaq fell by 1.0%.
Craig Erlam, the senior market analyst at Oanda in London, said, “We appear to be in a sort of wait-and-see mode.” Interest-rate rises are now factored in, which means we’ve entered a new era. Slower growth has already been factored in. Intraday volatility is still present, but it seems to have steadied.”
The consumer price index for July will be released in the United States on Friday. According to experts polled by The Wall Street Journal, inflation is predicted to jump 8.2 percent in May from a year earlier. A decrease to 5.9 percent in annual price increase, excluding food and energy, is projected in May, down from 6.2 percent in April.
Even while investors have been looking for evidence of an end to inflationary pressures, they have seen nothing so far.
According to Mr. Erlam, “there was quite an obvious dissatisfaction about how mild the decline in inflation was last month.”
Next week’s policy meeting is expected to see the Fed raise interest rates by a half-percentage point, with another half-percentage point increase planned for July.
Before the opening bell, JetBlue Airways increased its bid to acquire Spirit Airlines by 7.9 percent. Having agreed to combine with Frontier Airlines, JetBlue launched an aggressive acquisition bid against Spirit Airlines in May. On Friday, the shareholders of Spirit Airlines will vote on the Frontier merger. Premarket, JetBlue shares fell by 0.6%, while Frontier shares rose by 0.9%.
On Friday, Elon Musk said that Tesla (NASDAQ: TSLA) will slash 10% of its paid employees, citing global economic worries. Shares of Tesla rose 4% in premarket trade, somewhat rebounding from Friday’s 9.2% drop.
Following the Amazon 20-for-1 stock split, trading will resume on Monday. An Amazon stock was worth $2,447 before the split.
This month, S&P Dow Jones Indices announced that Keurig Dr. Pepper (up 7.9 percent), VICI Properties (up 8.6 percent), and ON Semiconductor (up 7.4 percent) will all be included in the S&P 500 index.
As of Monday morning, Brent oil was trading at more than $120 a barrel. As Russia’s conflict in Ukraine has disturbed global commodities markets, the price of Brent crude has jumped about 55% this year.
Yields on U.S. Treasurys rose to 2.953 percent in the bond market on Monday, up from 2.940 percent on Friday. Even if interest rates climb, they remain much below their May peak of 3.124 percent.
A vote of confidence for Boris Johnson as Prime Minister is scheduled on Monday, which sent the pound up 0.5% to $1.2553 overseas. Revelations that Mr. Johnson had parties in Downing Street during Covid-19 lockdowns have lowered his poll numbers.
After a four-day Platinum Jubilee weekend, which marked Queen Elizabeth II’s 70th year in the monarchy, the FTSE 100 gained 1.2 percent.
Stoxx Europe 600 increased by 0.9% throughout the continent. It is anticipated that the European Central Bank will announce its intentions for reducing bond purchases and boosting interest rates on Thursday. Interest rates are expected to rise for the first time in over a decade.
Asian markets soared after China relaxed Covid-19 restrictions in major cities. The Shanghai Composite and the Hang Seng Index in Hong Kong both increased by more than a percentage point. The Nikkei 225 index of Japanese stocks rose 0.6 percent.
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