Stock futures rise when traders try to shake off losses in April

Equities led to losses in the first session in May following one of the worst monthly results for the S&P 500 since the depths of the 2020 pandemic.

The contracts for the S&P 500 were lower, and overnight winnings were deleted. Dow and Nasdaq futures also plunged into red before the opening bell. The US crude oil price fell to above 101 dollars per barrel, and the 10-year reference rate on the Treasury remained above 2.9%, or close to the highest level since December 2018.

Investors this week are preparing for more potential market movement events to take place after April̵[ads1]7;s volatile trading. The S&P 500 fell 8.8% in April due to the worst monthly performance since March 2020. Technology stocks in particular were hit, and the Nasdaq Composite plunged 13% last month, the worst since October 2008.

The Federal Reserve’s next monetary policy meeting will be monitored particularly closely in the coming days, with the central bank ready to release its latest policy statement and hold a press conference with Fed Chairman Jerome Powell on Wednesday afternoon. Market participants expect the Fed to raise interest rates by 50 basis points at the end of this meeting, marking the first rate hike of that magnitude since 2000. This will follow the 25 basis point rate hike the Fed implemented in March, bringing the target. range for the federal funds rate to between 0.25% and 0.50% and raise the low end of the range above zero for the first time since March 2020.

The Fed is also expected to formally announce that it will begin quantitative easing, or roll out assets of the $ 9 trillion balance sheet. The exchange had amassed assets and added to its balance sheet during the pandemic as another means of helping to support the virus-affected economy. However, expectations of repealing this construction have aroused volatility after the markets became accustomed to this simple monetary policy.

And with US GDP growth declining for the first time since mid-2020 in the first quarter of this year, some analysts have begun to question whether the Fed will be able to tighten monetary policy without initiating a deeper decline in economic activity.

“The risk of recession has increased, and the financial health of the private sector may ultimately determine whether policy tightening will tip the economy into a downturn,” Goldman Sachs chief economist Jan Hatzius wrote in a note Sunday. “Financial fragility in the private sector has historically amplified the impact of the headwinds facing today’s expansion: higher interest rates, rapid wage growth and declining growth.”

Meanwhile, the earnings season will also continue this week, with a number of closely monitored companies from Airbnb (ABNB) to Uber (UBER) and Lyft (LYFT) and Block Inc. (SQ) reporting results. On the way into this week, 55% of the S&P 500 components had reported actual results for the first quarter, of which 80% topped earnings estimates per share, while 72% exceeded earnings expectations, according to data from FactSet.

The expected earnings growth for the S&P 500 companies as a whole has now also risen to 7.1%, up from 4.7% at the end of March, FactSet noted. Nevertheless, if 7.1% remains the actual earnings growth for the index in the first quarter, it will mark the lowest rate since the fourth quarter of 2020.

07:43 ET Monday: Stock futures move towards a higher opening

Here is where the markets traded on Monday morning before opening time:

  • S&P 500 futures (NO = F): +7.5 points (+ 0.18%) to 4,135.00

  • Dow futures (├ůM = F): +89 points (+ 0.27%) to 32,971.00

  • Nasdaq futures (NQ = F): +27.75 points (+ 0.22%) to 12,879.75

  • Rough (CL = F): -2.95 dollars (-2.82%) to 101.74 dollars per barrel

  • Gold (GC = F): – $ 32.40 (-1.69%) to $ 1,879.30 per ounce

  • 10-year Treasury (^ TNX): +3.5 bps to give 2.92%

Stock futures rise when traders try to shake off losses in April

NEW YORK, NEW YORK – APRIL 28: Traders work on the floor of the New York Stock Exchange (NYSE) April 28, 2022 in New York City. The Dow Jones Industrial Average rose in morning trading as markets continued to move through a period of volatility due to inflation concerns and the war in Ukraine. (Photo: Spencer Platt / Getty Images)

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter.

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