Stock futures rose slightly after a broad rally on the first day of trading in October – a sharp turnaround from September, which brought the worst month since March 2020 for the Dow Jones Industrial Average and the S&P 500.
Futures tied to the S&P 500 rose 0.05%. Nasdaq 100 futures rose 0.15 percent. Futures for the Dow Jones Industrial Average were up 4 points, or 0.01%.
Monday brought a respite from the slides seen through September and last quarter. The Dow jumped nearly 2.7%, or about 765 points, to close at 29,490.89. This was the best day since June 24. The S&P 500 rose about 2.6% to 3,678.43 in its best day since July 27. The Nasdaq Composite rose about 2.3% to 10,815.43.
Meanwhile, the yield on the 10-year U.S. Treasury note fell to around 3.65%, down from more than 4% at one point last week.
“It was a relief rally,” said Jon Maier, chief investment officer at Global X ETFs. But he also warned against starting from a trend based on one trading day. “I don’t think one day of relief changes history.”
Maier said the rally likely came from optimism in the United States over the state of foreign markets, as the dollar continued to rise. But in the US, he said broader market trends are likely to be linked to future decisions by the Federal Reserve as it aims to continue to lower inflation.
Investors will watch for new data on Tuesday from the Job Openings and Labor Turnover Survey administered by the Bureau of Labor Statistics.