Stock futures rise slightly ahead of June 1
Stock futures rose slightly on Tuesday night as Wall Street turned into another month.
Futures contracts tied to the Dow Jones Industrial Average added 102 points, or 0.2%. The S&P 500 index rose about 0.2%. Nasdaq 100 futures contracts rose about 0.3%.
The move in the futures contract takes place after bearish day for stocks, with the Dow down 222.8 points, or 0.7% in a messy session. The S&P 500 and Nasdaq Composite fell 0.6% and 0.4%, respectively.
The Dow and S&P 500 were little changed in May, after a strong rally last week sent the indexes down. The Nasdaq Composite underperformed, falling more than 2%.
With the first-quarter earnings season nearing completion and the Federal Reserve strongly signaling its intent to raise interest rates for the next two meetings, stocks could struggle to find direction over the summer.
“Best to wait and see how the next quarter plays out. By the end of July we’ll have a better picture. Until then, I think we’re going to see a lot of market volatility. move with the downside, said Max Gokhman, chief investment officer at AlphaTrAI.
One potential source of optimism for the overnight markets is Salesforce, who has first quarter results topped expectations. Shares rose more than 7% in extended trading.
On Wednesday, investors will get an updated look at manufacturing and construction spending data. The first day of June also marks the beginning of the Fed’s plan to reduce its balance sheet, which has grown to nearly $9 trillion during the Covid pandemic.