Stock futures surged on Monday after their strongest week this year as the market remains confident that the Federal Reserve is ready to conclude tightening measures.Thank you for reading this post, don't forget to subscribe!
Futures for the S&P 500, symbol (^GSPC), are up approximately 0.2%, while futures for the Dow Jones Industrial Average, symbol (^DJI), are slightly above the flatline. Contracts for the tech-heavy Nasdaq 100, symbol (^NDX), experienced a slight increase of more than 0.2%.
The major US stock indexes saw gains on Friday after employment growth in the US slowed more than anticipated and wage inflation eased, raising optimism that the interest rate hikes by the Federal Reserve might be coming to an end.
Read more: The impact of the Federal Reserve’s decision to pause interest rate hikes on bank accounts, CDs, loans, and credit cards
Investors will closely monitor comments from various officials of the Federal Reserve this week, including two appearances by Chairman Jerome Powell. Some of these officials include regional Fed presidents John Williams and Raphael Bostic.
Some individuals on Wall Street have cautioned that optimism may be diminishing and have advised being prepared for stock volatility. Morgan Stanley strategist Mike Wilson cautioned that the stock market rebound of last week “resembles more of a bear market rally rather than the beginning of a sustained surge.”
In the meantime, the market is still recovering from quarterly earnings while the economic calendar remains quiet. Highlights for this week include Disney’s (DIS) earnings on Wednesday, with Dish Networks (DISH) and TripAdvisor (TRIP) scheduled to report on Monday.
In terms of commodities, oil prices surged following confirmation over the weekend that top exporters Saudi Arabia and Russia would continue their voluntary output cuts. West Texas Intermediate crude futures (CL=F), the US benchmark, climbed 1.9% to $82.01, while global benchmark Brent crude futures (BZ=F) increased 1.7% to $86.32.
Stock futures rise as Federal Reserve expectations remain unchanged
The major US stock indices are poised to continue advancing on Monday, building upon the gains from last week, as investor confidence increased following the Federal Reserve’s decision to raise interest rates.
Futures for the Dow Jones Industrial Average, symbol (^DJI), rose 0.11%, or 37 points, while futures for the S&P 500, symbol (^GSPC), increased by 0.20%. Contracts for the Nasdaq 100, symbol (^NDX), with its focus on technology, rose by 0.22%.
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