Equity futures rose slightly in overnight trading on Monday after a losing day as investors prepare to rebalance their portfolios with the end of the quarter fast approaching.
Dow Jones Industrial Average futures gained 36 points. S&P 500 futures edged up 0.2% and Nasdaq 100 futures rose 0.3%.
The overnight action followed modest losses on Wall Street as a comeback rally stalled. The blue-chip Dow fell about 60 points, while the broader benchmark, the S&P 500, fell 0.3% and the tech-heavy Nasdaq Composite lost 0.7%. Major averages rallied last week, posting their first positive week since May.
“Market bulls who have had their rug pulled multiple times this year can naturally be suspected of the rally, as many of 2022’s highs quickly gave way to new lows and this time may not be different” , said Chris Larkin, chief trading officer at E-Trade.
Investors will watch more data on Tuesday, including consumer confidence in June and house prices in April, to gauge the health of the economy. Fears of a recession have been growing lately as the Federal Reserve tries to tackle soaring inflation with aggressive rate hikes.
Shares of Nike rose slightly in post-trade trading after the sportswear company beat Wall Street expectations for fiscal fourth-quarter earnings and sales despite a Covid lockdown in China and a climate more difficult for consumers in the United States
Several major banks have increased their dividends in response to passing the Federal Reserve’s stress tests this year, including Bank of America, Morgan Stanley and Goldman Sachs. JPMorgan and Citigroup, however, said increasingly stringent capital requirements forced them to keep their dividends unchanged.
Despite last week’s rebound, the S&P 500 is down nearly 14% in the second quarter, on track to post its worst quarter since the first quarter of 2020, at the height of the pandemic.
“The rebound from bear market lows is a welcome change, although slowing economic growth and a lack of investor capitulation leave many skeptical about the sustainability of the recovery,” said Mark Hackett, chief executive officer. investment research at Nationwide.
Stock index futures rise slightly after a losing day on Monday
Source link Stock index futures rise slightly after a losing day on Monday