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Stock futures rise after a week-long loss

US stock futures rose, putting the market on a path to a recovery from a silent week that ended in a loss in major U.S. indexes.

The S&P 500 futures rose 1% on Monday, while the Dow Jones Industrial Average futures rose 0.8%. Technology-based Nasdaq-100 contracts were up 1.3%. Major U.S. indices fell on Friday after data showed a slowdown in hiring growth in May, even as employers added 390,000 strong jobs.

Investors are looking at economic data closely for clues as to how the Federal Reserve is raising interest rates. Fears that the Fed could aggressively raise rates and cause a recession in the economy have sparked volatility in global markets this year.

But the trade has been quieter in recent weeks. The Dow industry fell 0.9% last week, the smallest change in a week of about a month. The S&P 500 lost 1.2% last week, while the Nasdaq fell 1%.

A major test of the health of the U.S. economy will be Friday’s consumer price index. Looking closely at the inflation measure, it is expected to rise 8.2% in May from a year earlier, according to economists surveyed by The Wall Street Journal. Excluding food and energy, price growth is expected to cool slightly to 5.9% year-on-year in May, up from 6.2% in the previous month.

Some investors believe that US inflation has peaked after reaching a 40-year high in April, partly driven by Russia’s war in Ukraine, which has led to a sharp rise in the prices of various commodities. As energy prices continued to rise on Monday, gross Brent rose to more than $ 120 a barrel. Brent’s prices, a gross global benchmark, have risen nearly 55% this year.

In the bond market, 10-year US Treasury yields rose to 2.964% from 2.940% on Friday as investors sold government bonds. Yields and bond prices are reversed. Bond yields have risen in recent weeks, but remain below the final high of 3.124% set in early May.

Traders were working on the floor of the New York Stock Exchange on Friday.


Photo:

BRENDAN MCDERMID / REUTERS

Abroad, the British pound rose 0.6% against the U.S. dollar to $ 1.26 as Prime Minister Boris Johnson had to face a vote of confidence in his leadership on Monday. Mr. Johnson’s poll ratings have dropped in the Covid-19 blockade as part of his revelations that he was partying on Downing Street.

The UK’s FTSE has risen 100% by 1.2% after being closed on Wednesday due to a four-day Platinum Jubilee weekend to celebrate Queen Elizabeth II’s 70th year on the throne.

The Stoxx Europe 600 pan-continental rose 0.9%. European investors will attend a European Central Bank policy meeting on Thursday to outline plans to release bond purchases and raise interest rates. The ECB is expected to raise rates for the first time in 11 years in July as it seeks to keep up with rising inflation.

Tesla shares gained 3.9% in pre-market trading after partially recovering from a 9.2% drop on Friday, CEO Elon Musk said the electric vehicle maker will cut 10% of salaried workers, citing concerns about the global economy.

Shares of Amazon.com rose 0.7% to $ 123.20 in pre-market trading. Monday will be the first trading day since the company split its share of 20 shares.

Asian markets rose while China continued to ease Covid-19 restrictions in major cities. China’s Shanghai Composite rose 1.3% and Hong Kong’s Hang Seng Index rose 2.7%. The Japanese Nikkei rose 225% to 0.6%.

Write to Chelsey Dulaney at chelsey.dulaney@wsj.com

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Stock futures rise after a week-long loss

Source link Stock futures rise after a week-long loss

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