Stock futures inched higher in overnight trading Sunday after the S&P 500 registered its best week of 2024.
Futures tied to the S&P 500 rose 0.1%, while futures connected to the Dow Jones Industrial Average added 30 points, or 0.1%.
Nasdaq-100 futures edged up 0.2% Stocks are coming off a winning week amid a volatile stretch for equities.
The Nasdaq Composite and Dow added 5.2% and 2.9%, respectively.
The worries sparked a global sell-off, pushing the S&P 500 on Aug. 5 to record its worst day since 2022.
Sunday’s overnight trading saw a slight increase in stock futures as the SandP 500 had its best week of 2024.
Futures linked to the Dow Jones Industrial Average gained 30 points, or 0 points1 percent, while those linked to the S&P 500 increased by 0 points. Expectations for the Nasdaq-100 increased by 0.2 percent.
After a strong week of gains, stocks are entering a period of increased market volatility. For its greatest week since 2023, the broad index increased by 3 points, nine percent. Both the Dow and the Nasdaq Composite saw increases of 2 and 2%, respectively.
Liz Young Thomas of SoFi told CNBC on Friday that “this was a little game of ‘put the money back where it came from,’ much like some of the last recoveries that we’ve had after pullbacks.”.
The market needed “good news,” she continued, in order to start bounce-backing from the previous week’s debacle. Walmart’s results, initial jobless claims, and strong retail sales all contributed to that.
The rally of last week occurred after August had a tumultuous beginning. Recession fears and worries that the Federal Reserve was trailing the curve on rate cuts were stoked earlier this month by dismal data. Fears led to a sell-off worldwide, pushing the S&P 500 higher on August 16. 5 will go down as the worst day since 2022.
The market appeared to calm down after receiving fresh data last week, raising expectations that the economy would achieve a soft landing. According to the July consumer price index, the 12-month inflation rate decreased to 2 percent, which is the lowest level in over three years.
As investors seek further clarification on the outlook for rate cuts, Wall Street is anticipating Fed Chair Jerome Powell’s speech in Jackson Hole, Wyoming, on Friday. Wednesday’s minutes from the Federal Reserve’s most recent meeting are expected to provide more Fed news than just that. Monday also marks the start of the Democratic National Convention.
