Trader on the floor of the NYSE, June 16, 2022.
Source: NYSE
Stock futures rose in overnight trading Monday after a brutal week as investors viewed the Federal Reserve more positively and the possibility of a recession increased.
Dow Jones Industrial Average futures are up more than 250 points. S&P 500 futures rose 1.1% and Nasdaq 100 futures also gained 1.1%. The US stock market was closed earlier on Monday, June 16.
The major averages just experienced their 10th week of declines in 11 on fears that the central bank will raise interest rates aggressively to rein in inflation that threatens to trigger a recession. The S&P 500 fell 5.8% last week for its biggest weekly drop since March 2020, plunging deeper into bear market territory. The equity benchmark is now down more than 23% from its record high from early January.
The blue-chip Dow fell 4.8% last week, falling below 30,000 for the first time since January 2021 last week. The tech-heavy Nasdaq Composite fell 4.8% last week, down 33% from its record high.
Nationwide’s head of investment research, Mark Hackett, said: “The recent drop in the stock market and a shift in investor attitudes make the bottom argument harder to come by.” . “Investors are acting on sentiment, but fundamentals are starting to follow weakness in technical indicators.”
Fed Chairman Jerome Powell will testify before Congress on Wednesday and Thursday. His arrival comes after a recent rate hike to 3/4 of a percentage point, the biggest central bank increase ever. since 1994.
Investors will keep an eye on incoming data, including existing home sales on Tuesday, to gauge the health of the economy. Recent data showing low consumer confidence, falling retail spending and a cooling housing market have stoked recession fears as the Fed battles inflation at a 41-year high.
Meanwhile, cryptocurrencies continue their roller coaster ride. Bitcoin reduced new 2022 low of $17,601.58 at the end of the week before surging back above the $20,000 mark on Monday. The world’s largest cryptocurrency by market capitalization is 70% below its all-time high in November.
