Futures Pointing To Initial Strength On Wall Street
After ending last Friday’s volatile session sharply higher, stocks may see further upside in early trading on Monday. The major index futures are currently pointing to initial strength on Wall Street, with the Dow futures up by 93 points.
Stocks may continue to benefit from bargain hunting, as the advance seen last Friday came following four straight days of losses.
Optimism the Federal Reserve will slow the pace of interest rate hikes may also contribute to initial strength, although buying interest may be somewhat subdued.
Traders may be reluctant to make significant moves ahead of the U.S. midterm elections on Tuesday and the release of consumer price inflation data on Thursday.
The midterm elections will determine whether Democrats maintain control of Congress, while the inflation data could impact the outlook for interest rates.
Any early upside on Wall Street may also be limited by a drop by shares of Apple (AAPL), with the tech giant down by 1.2 percent in pre-market trading.
Apple is moving lower after warning Covid-19 restrictions in China are hindering iPhone production and will lead to lower than expected shipments.
Stocks saw significant volatility during trading on Friday before eventually ending the session sharply higher. With the strong upward move, the major averages regained ground after closing lower for four straight sessions.
The major averages all posted strong gains on the day. The Dow jumped 401.97 points or 1.3 percent to 32,403.22, the Nasdaq surged 132.31 points or 1.3 percent to 10,475.25 and the S&P 500 shot up 50.66 points or 1.4 percent to 3,770.55.
Despite the rebound on the day, the major averages all moved notably lower for the week. The Dow slumped by 1.4 percent, the S&P 500 tumbled by 3.4 percent and the Nasdaq plunged by 5.7 percent.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan’s Nikkei 225 Index jumped by 1.2 percent, while Hong Kong’s Hang Seng Index surged by 2.7 percent.
Meanwhile, the major European markets are turning in a mixed performance on the day. While the U.K.’s FTSE 100 Index is down by 0.2 percent, the French CAC 40 Index is nearly flat and the German DAX Index is up by 0.8 percent.
In commodities trading, crude oil futures are falling $0.61 to $92.00 a barrel after soaring $4.44 to $92.61 a barrel last Friday. Meanwhile, after spiking $45.70 to $1,676.60 an ounce in the previous session, gold futures are inching up $2.70 to $1,679.30 an ounce.
On the currency front, the U.S. dollar is trading at 146.33 yen versus the 146.62 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $0.9979 compared to last Friday’s $0.9957.
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