Dow futures rise after key averages record three consecutive days of defeat

US stock index futures remained almost unchanged on Thursday’s overnight trading. After all three major averages have recorded three consecutive days of losing, exceeding one day.

Futures contracts related to the Dow Jones Industrial Average rose 18 points. S & P 500 futures rose 0.08%, while Nasdaq 100 futures fell slightly.

During normal trading, the Dow rose 434 points, up 1.29%. The S & P 500 and Nasdaq Composite Index rose 1.22% and 0.72%, respectively.

Still, despite a strong session on Thursday, inflation concerns have hit sentiment and the key average is on track for the big losses this week.

The Dow fell 2.18% in a week, while the S & P fell 2.84%. Tech stocks have been hit particularly hard, with the Nasdaq down 4.56% this week.

“As the post-pandemic recovery accelerates, rising inflation is likely to continue to be in the limelight,” said Mark Hefere, chief investment officer at UBS Global Wealth Management. “But while we anticipate inflation concerns will cause volatility attacks and continue to be in a reflationary position, we also see such market volatility as an opportunity to build exposure to structural winners. . “

The Centers for Disease Control and Prevention relaxed its guidelines on Thursday, stating that in most situations fully vaccinated people do not need to wear masks indoors or outdoors.

The stocks most exposed to the ongoing recovery rebounded following the announcement, ending the day with the NYSE Arca Airlines index nearly 2% higher.

Market volatility this week is due to economic data showing inflation. The consumer price index rose 4.2% year-on-year in April, the fastest since 2008. This raised concerns that the Federal Reserve could be forced to dial back its accommodative monetary policy.

Still, the earnings season is stronger than expected, the bull market is practicable, and some believe investors need to take advantage of the downturn.

“Even if bond yields rise in anticipation of a central bank tightening, corporate gains are strong enough to keep the market up,” said Citi’s equity strategist Robert Buckland. “So I buy any short-term depression, as we may be seeing now. There are times when I’m more cautious, but it may be next year, not this.”

April retail sales will be announced on Friday, along with industrial production and consumer sentiment figures.

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Dow futures rise after key averages record three consecutive days of defeat

Source link Dow futures rise after key averages record three consecutive days of defeat

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