Traders on the floor of the NYSE, June 16, 2022.
Stock futures rose overnight Monday after a brutal week as investors considered a more aggressive Federal Reserve and increasing chances of a recession.
Futures on the Dow Jones Industrial Average scored more than 250 points. S&P 500 futures rose 1[ads1].1% and Nasdaq 100 futures also rose 1.1%. The US stock exchanges were closed earlier Monday for Juneteenth.
The large averages just suffered their 10th loss week at 11 due to fears that the central bank will increase interest rates aggressively to tame inflation with the risk of causing an economic downturn. The S&P 500 fell 5.8% last week for its largest weekly loss since March 2020, plunging deeper into bear market territory. The share reference is now more than 23% lower than the record from the beginning of January.
Blue-chip Dow fell 4.8% last week, falling below 30,000 for the first time since January 2021 last week. The technology-heavy Nasdaq Composite fell 4.8% last week, down 33% from a record high.
“The recent downturn in the stock markets and the bending in investor attitudes make a bottom thesis more difficult to make,” said Nationwide’s head of investment analysis, Mark Hackett. “Investors are acting emotionally, but the basics are beginning to follow the weakness of the technical.”
Fed leader Jerome Powell will testify before Congress on Wednesday and Thursday. His behavior comes after a recent rise in interest rates by three quarters of a percentage point, the central bank’s largest increase since 1994.
Investors will monitor incoming data, including existing home sales on Tuesday, to measure the health of the economy. Recent data showing low consumer confidence, falling retail spending and a cooling housing market have driven fears of a recession as the Fed fights 41-year highs.
Meanwhile, cryptocurrencies continued their roller coaster ride. Bitcoin fell to a new low in 2022 of $ 17,601.58 over the weekend before climbing back above the $ 20,000 mark on Monday. The world’s largest cryptocurrency by market value is 70% below its record high hit in November.