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Friday, August 12, 2022
Stocks & Shares

U.S. futures rise after rebound from this year’s declines

Dow Jones

Dow Jones Industrial Average futures advanced 0.3%, S&P 500 futures added 0.5%, and Nasdaq 100 futures gained 0.6%

U.S. stock futures rose on Monday morning after a major bounce back last week from this year’s steep declines. However, despite the bounce, Wall Street is preparing to wrap up the worst first half for stocks in decades.

Dow Jones Industrial Average (DJIA) futures advanced 0.3%, or 113 points. S&P 500 futures added 0.5%, and Nasdaq 100 futures gained 0.6%.

Those moves followed a major comeback week that saw the Dow industrials jump more than 800 points, or 2.7%. The S&P 500 rose 3.1%, and the Nasdaq Composite soared 3.3%.

Those gains helped the major averages post their first positive week since May. The Dow jumped 5.4% last week. The S&P 500 rose 6.5%, and the Nasdaq Composite advanced 7.5%.

Market participants continued to assess whether stocks have found a bottom, or are instead just briefly rebounding from oversold conditions. Stocks could continue to get a lift in the near term this week, as investors rebalance their holdings for the quarter-end.

In a sense, the equity market is likely to be in a go-nowhere-fast mode for the foreseeable future, Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, told CNBC on Friday.

Inflation is running hot, sentiment is subdued, liquidity is evaporating, and earnings are both a bright spot and a wildcard. So, in aggregate, to us, that implies that we’re probably in a sideways trending mode for a while, Sandven added.

On the economic front, Wall Street is expecting the latest reading of durable goods orders to come out Monday before the bell.

Traders are also watching for the pending home sales report, which is expected at 2:00 pm GMT on Monday.

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