Major Wall Street benchmarks futures rose in pre-market trading on Tuesday after a volatile previous session Shares saw a rally in the last hour, hitting a six-week high.
Contracts on the S&P 500 rose 0.4% and the Dow Jones Industrial Average jumped 150 points. Futures linked to the Nasdaq Composite Index rose 0.3% after the index rebounded with a rebound in technology stocks during the previous session. The big names in the sector – Tesla, Amazon and Apple – rebounded in day trading on Monday after a rough start to the year driven by risk-averse sentiment amid rising interest rates by the Federal Reserve.
“US companies are in excellent shape — earnings estimates are higher in 2022 now than they were at the start of the year, which is no small feat,” Jeff Bushbinder, equity analyst at LPL, said in a note, adding, however, that the positive outcome was expectations. Not without risks, particularly around anti-inflation on the part of the Federal Reserve. Bushbinder noted that the S&P 500 posted a 19% correction when the Federal Reserve raised interest rates as recently as three years ago.
“We saw in 2018 what can happen when the market thinks the central bank is getting too aggressive,” he said. We will certainly not rule out the possibility of an escalation of the war in Europe and a broader conflict.
The slowdown in economic expansion and a difficult margin environment caused by wage pressures, supply chain problems, material and labor shortages, and rising commodity prices, indicates that the impact on corporate profits is the slowdown in economic expansion and a difficult margin environment. These factors can drive big profits for companies to make and leave valuations to do the heavy lifting – but these valuations may not provide enough support to support the S&P 500 until 5,000 at the end of the year.
Eileen Hazen, chief market strategist at FL Putnam, echoed a similar view On Yahoo Finance Live on Monday.
“As we see cross-curricular inflation, we expect margins to continue to be under pressure,” Hazen said.
Inflation fears are also growing for ordinary Americans. The Conference Board’s Consumer Confidence Index due out on Tuesday will give a quick glimpse into their thinking after the recent price hike. Economists polled by Bloomberg are looking for the index to fall to 107.0 for March from a reading of 110.5 last month.
There will also be a fresh reading on labor demand from the Job Opportunity and Employment Turnover Survey (JOLTS) for February due for release on Tuesday morning. Analysts expect 11 million vacancies, Little has changed from the January opening 11.26 million. The results will kick off a week of new jobs data for March, which includes ADP’s own payroll (released Wednesday) and the important jobs report (Friday).
Investors got some relief on Monday as the CBOE Volatility Index (CBOE) came to light.^ VIX), which measures volatility and acts as a gauge of market sentiment, is down. Wall Street’s “fear index,” known as the VIX, settled below 20 for the first time since January after hovering at elevated levels in recent weeks.
Meanwhile, oil prices fell on Monday after Shanghai implemented a lockdown to curb an increase in coronavirus cases, renewing fears of slowing demand. West Texas Intermediate crude futures contractsCL = F.) fell 9.2% to settle at around $103 a barrel, posting its biggest drop in two weeks.
The war in Ukraine is still on the radar of investors. The Kremlin said on Monday that Peace talks between Russia and Ukraine This week may continue when officials from both countries meet in Turkey on Tuesday.
“While we cannot and will not talk about progress in the talks, the fact that they continue in person is, of course, important,” Kremlin spokesman Dmitry Peskov told reporters on a conference call.
Peskov added that no significant progress had been made in the talks themselves or the prospect of a face-to-face meeting between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky.
7:10AM ET: Stock futures rise ahead of consumer confidence, jobs data
Here are the main moves in the markets ahead of Tuesday’s open:
S&P 500 futures contracts (ES = F.): +16.00 points (+0.35%) to 4584.00
Dow futures contractsYM = F.): +132.00 points (+0.38%) to 34985.00
Nasdaq futures contractsNQ = F.): +40.75 points (+0.27%) to 15026.00
raw (CL = F.): +0.88 dollars (+0.83%) to 106.84 dollars per barrel
gold (GC = F.):- $28.50 (-1.47%) to $1911.30 an ounce
Treasury for 10 years (^ degeneration): -0.00 basis points to get 2.477%
6:16pm ET Monday: Futures open flat after stocks close at 6-week highs
Here’s where the major stock index futures opened on Monday night:
S&P 500 futures contracts (ES = F.): +0.25 points (+0.01%) to 4568.25
Dow futures contractsYM = F.): -14.00 points (-0.04%) to 34,839.00
Nasdaq futures contractsNQ = F.): -10.75 points (-0.07%) to 14,974.50 points
raw (CL = F.):- $2.43 (-2.29%) to $103.53 per barrel
gold (GC = F.): – 17.60 USD (-0.91%) to 1,922.20 USD per ounce
Treasury for 10 years (^ degeneration): -1.5 basis points to produce 2.477%
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed
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