Stock futures have risen to recover from the market edge

U.S. stock futures rose on Monday morning, with equities closing in on a seven-week losing streak in tighter terms as investors put off some recent turmoil and digested new trade-related comments from the Biden administration.

The S&P 500 contract gained more than 1% in early trading. The index closed flat on Friday’s session but fell within a bear market strike distance of 18.7% from a January 5 record closing, defining that once the index closes at least 20% from its recent all-time high. .

The Dow futures rose more than 300 points, or 1.1%, and the Nasdaq futures rose more than 1% during pre-market trading. President Joe Biden said he was considering easing tariffs on Chinese goods imposed during the previous administration. During a news conference with Japanese Prime Minister Fumio Kishidar, Treasury Secretary Janet Yellen said last week that she was encouraging the Biden administration to remove tariffs that “impose more damage on consumers and businesses.” Us

The prospect of a slight easing of tariffs as the US economy struggles with decades of high inflation has at least temporarily boosted risky assets, hurt by rising prices in recent weeks, a more aggressive Federal Reserve monetary policy and international concerns in Ukraine. And China. As of Friday, the S&P 500 last week posted a seventh consecutive weekly loss in its longest losing streak since 2001. And at its worst point on Friday, the index for bear trade fell to 20.6% from a January record high. Market area.

Traders work on the floor during the opening hours of the New York Stock Exchange in New York City on May 16, 2022.  - US stocks were down on Monday after rallying in the previous session on concerns about internal growth.  And the world economy continues.  (Photo by Timothy A. Clary / AFP) (Photo by Timothy A. Clary / AFP Getty Images)

Traders work on the floor during the opening hours of the New York Stock Exchange in New York City on May 16, 2022. – US stocks were down on Monday after rallying in the previous session on concerns about internal growth. And the world economy continues. (Photo by Timothy A. Clary / AFP) (Photo by Timothy A. Clary / AFP Getty Images)

According to LPL Financial Chief Market Strategist Ryan Detrick, since World War II, there have been 12 official bear markets for the S&P 500 and 17 “near bear markets” or periods when the index fell more than 19%. Of these, the average drop was about 29.6%, and lasted an average of 11.4 months.

However, when bear markets coincide with the recession, they tend to get worse, declining by an average of 34.8% and lasting 15 months, Detrick added. Negative GDP (gross domestic product) growth is considered a recession after two consecutive quarters.

Traders are set to get a second estimate of first-quarter US GDP later this week, which was reported to have shrunk at an annual rate of 1.4% from the first estimate last month. Recent economic data has shown some pocket strength, but employment data has started to soften as retail sales and some manufacturing data have strengthened.

Rice Williams, chief strategist at Spouting Rock Asset Management, told Yahoo Finance Live on Friday, “I think the economy is telling you a good stock market right now.” “And my guess is we’re going to make noise in both stocks and bonds this summer.”

7:23 am ET: The stock futures gained more than 1%

  • S&P 500 Futures (EN = F): +47.5 points (+ 1.22%) to 3,947.00

  • Dow Future (YM = F): +346.00 points (+ 1.11%) to 31,559.00

  • Nasdaq Future (NQ = F): +127.25 points (+ 1.07%) to 11,968.00

  • Crude (CL = F): + $ 1.08 (+ 0.98%) to 111.36

  • Gold (GC = F): + $ 16.90 (+ 0.92%) to 1,859.00 per ounce

  • 10 year treasury (^ TNX): +4.6 bps Yield 2.833%

Emily McCormick is a reporter for Yahoo Finance. Follow him on Twitter.

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