Traders gather on the floor of the New York Stock Exchange on August 4, 2022.
Source: New York Stock Exchange
Stock futures rose in overnight trading on Sunday after a week of market losses as 2024 stock gains took a lull.
Dow Jones Industrial Average futures rose 95 points. S&P 500 futures rose 0.2% and Nasdaq 100 futures rose 0.3%.
The 30-stock Dow Jones Industrial Average fell 2.3% last week, marking its worst weekly performance in March 2023. The S&P 500 index fell nearly 1% during the period, its biggest weekly decline since early January. The tech-heavy Nasdaq Composite Index fell 0.8%, marking its fourth negative turn in five weeks.
But last week’s market ended on a strong note after Friday’s better-than-expected jobs report. The surprising increase in salaries gave investors hope that a strong economy could continue to support corporate profit growth, even if it meant higher interest rates for an extended period of time.
“Job and wage growth is strong, with total payrolls outpacing inflation, which will allow Americans to continue spending in 2024 and keep the economy moving forward,” said Bill Adams, chief economist at Comerica Bank. Deaf,” he said.
Investors are looking forward to the release of the March Consumer Price Index and Producer Price Index later this week for further clarity on how successful the Fed’s inflation-fighting efforts have been.
Economists polled by Dow Jones expect the consumer price index (CPI) to be released Wednesday morning to rise 0.3% last month and 3.5% from a year ago.
Vital founder Adam Crisafulli said, “While the Fed doesn’t seem to care about strong job growth…inflation is a bigger problem, and March price data (CPI, PPI, PCE)… It is essential to show that the inflation defusing process is back on track.” Knowledge, it was written in the memo.
Investors have also been troubled by rising bond yields and oil prices. The yield on the benchmark 10-year U.S. Treasury note rose nearly 20 basis points from last week to about 4.4%. US crude oil hit $87 amid geopolitical tensions.
