January 31, 2023

Brighton Journal

Complete News World

Stock futures rose after the major averages posted consecutive weekly losses

Stock futures rose after the major averages posted consecutive weekly losses

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, December 7, 2022.

Brendan McDiarmid | Reuters

Stock futures rose early Monday after the major averages posted a second straight week of losses for the first time since September. Investors also struggled to shake off recession fears.

Futures linked to the Dow Jones Industrial Average gained 38 points, or 0.11%, while S&P 500 and Nasdaq 100 futures gained 0.14% and 0.13%, respectively.

The overnight moves followed another bearish week for stocks yet The Fed raised the short-term interest rate by 50 basis points Higher rates are indicated for longer. Recession fears mounted as the central bank raised its forecast for future hikes above previous expectations, saying it now expects to raise interest rates to 5.1%.

On Friday, the Dow Jones fell 281.76 points, or 0.85%. The 30-share index fell 1.66% for the week, bringing its monthly losses to 4.83%. The S&P 500 fell 1.11% and declined 2.08% for the week, extending its monthly declines to 5.58%. The Nasdaq Composite fell 0.97% on Friday and 2.72% for the week. It is down 6.65% this month.

“Monetary policy is rapidly tightening now that the Fed has raised interest rates by 400 basis points in 9 months,” Ed Moya, chief market analyst at Oanda, wrote in a note to a client on Friday. “The risk of a recession will only increase now [Fed chair Jerome Powell] He noted that we should expect “continued increases”.

Earnings season continues this week with reports from Nike and FedEx on Tuesday. The National Association of Home Builders survey, which measures monthly sentiment, is due out Monday.

See also  Tesla shareholders widely follow the recommendations of the board of directors at the annual meeting