U.S. stock futures recovered, with Dow rising 213 points

U.S. stock futures fell after Dow and S&P 500 hit records

U.S. stock index futures recovered on Monday as the S&P 500 comes off its longest daily losing streak since February.

Futures contracts linked to the Dow increased by 213 points or 0.6%. Meanwhile, S&P 500 futures surged 0.6% and Nasdaq 100 futures advanced 0.6%.

Remarkably, all three major averages finished lower on September 10. The DJIA and S&P recorded a fifth straight day of losses. Meanwhile, the Nasdaq Composite posted its third consecutive negative session. It was S&P’s worst losing streak since February 22.

For the week, the Dow dipped by 2.15%, and S&P 500 fell by1.69%. Notably, it was the worst weekly performance since June. Meanwhile, the Nasdaq Composite witnessed its worst week since July, slipping 1.61%.

Additionally, COVID-19 infections seem to be declining in the United States. 7-day average through Friday was around 136,000, down from 157,000 average new cases at the end of August.

Remarkably, according to several sources, Pfizer’s coronavirus vaccine could be authorized for children by the end of October.

Delta Air Lines and United Airlines shares witnessed rises, increasing around 1%. Carnival Corp gained 1.6%, while Traditional cyclical plays GM and Citigroup raised. MGM shares soared by more than 2% after an upgrade by Bernstein to outperform.

UBS strategist Keith Parker announced that vaccinations with immunity should mean infections eventually drop. Parker sees the S&P 500 rising another 4% through year-end.

Hong Kong’s Hang Seng index sank nearly 2% amid regulatory concerns

On Monday, all three futures contracts were muted as investor sentiment was hit by heavy losses seen in Asia trading. Hong Kong’s Hang Seng index sank nearly 2% amid regulatory concerns surrounding sectors such as financial technology and electric vehicles.

Meanwhile, inflation fears have contributed to the market’s recent losses. Data published Friday revealed that producer prices rose 0.7% in August and 8.3% from 2020. It was the biggest annual increase since records were first kept in November 2010.

Investors are waiting for Tuesday’s consumer price index. Economists surveyed by FactSet expect the reading to show that consumer prices increased 5.3% on an annual pace in August. Meanwhile, retail sales data will be published later in the week.

The Fed will start its two-day policy meeting on September 21. It is likely to provide clues about the central bank’s bond-buying program.

Despite last week’s declines, the major averages are still relatively close to their record levels. The Dow Jones Industrial Average is below 2.87% from its lifetime, while the S&P is 1.92% below its all-time high. The Nasdaq Composite has slipped 1.87% from its record.

  • Support
  • Platform
  • Spreads
  • Trading Instument

For more news updates, visit our homepage now and see our latest news article. Want to learn more about trading? Visit our education page now and learn for FREE!

Leave a Reply