Stock futures increased on Monday following a volatile week on Wall Street. As we know, investors are waiting for a key event where the Fed will provide clues about prospects for tapering stimulus.
Remarkably, futures linked to the Dow increased about 145 points. Meanwhile, S&P 500 futures and Nasdaq 100 futures both witnessed gains.
Major averages are coming off a losing week as investors became worried that Federal Reserve’s potential move to pull back monetary stimulus could hamper the economic recovery. As we know, the economy suffered from the spread of the Delta strain of Covid-19.
As we have already mentioned, Traders are eagerly waiting for the Jackson Hole Symposium for indications about Fed’s decision to dial back its $120 billion a month bond-buying program. Remarkably, the event occurs virtually on Thursday and Friday.
The blue-chip Dow declined by 1.1% last week, while the S&P 500 dipped almost 0.6%
The Federal Reserve was previously set to conduct the event in a mixed virtual and live presentation. However, it decided Friday to go all virtual because of the growing virus risk.
Federal Reserve Chairman Jerome Powell’s speech will be titled The Economic Outlook. According to Nomura economist Aichi Amemiya, it may hint the speech could have a more near-term focus.
Additionally, the blue-chip Dow declined by 1.1% last week. Meanwhile, the S&P 500 fell almost 0.6%, breaking a two-week winning streak. The tech-heavy Nasdaq slipped 0.7% during the week.
For August, major benchmarks are poised to record modest gains. The S&P 500 surged 1.1% month to date. Meanwhile, the blue-chip Dow has increased 0.5%, and the Nasdaq has risen 0.3%.
Rod von Lipsey, managing director at UBS Private Wealth Management, announced, that August is a historically volatile month for markets, and this year is no different. Lipsey added that investors are currently climbing multiple walls of worry. Furthermore, he reported that upticks in coronavirus infections and a downward spiral in Afghanistan create a crisis of confidence while many investors are on holiday.
Moreover, the world’s largest cryptocurrency, Bitcoin, exceeded the $50,000 level on Sunday to reach a more than 3-month high. According to Coin Metrics, it was trading at $50,186.87 on Monday.
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