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Passengers depart from New York’s Wall Street subway station.
Amir Hamza / Bloomberg
Stock futures were signaling a higher start for Wall Street on Monday as the S&P 500 rallied to avoid a bear market closing on Friday.
Agreement attached
Dow Jones Industrial Average
144 points or 0.4% increase,
S&P 500
The future was 0.4% growth and
Nasdaq
Futures rose 0.3%.
The S&P 500 rose 0.01% to close at 3,901 on Friday. It dropped to 3,810 during the session. The S&P 500 needs to close below 3,837 – a maximum of 20% below January – to make it officially bear market. The index fell 3% last week and has been down for seven consecutive weeks. The Dow fell 2.9% last week, extending its weekly losing streak to eight, and the Nasdaq fell 3.8%.
A report on Monday gave a lift to tech-heavy Nasdaq futures
Broadcom
(Ticker: AVGO) was in advanced negotiations to achieve
VMware
(VMW). The Wall Street Journal says technology companies are negotiating a cash and stock deal that could come soon. Once the deal is done, it will be the biggest deal of the year. VMWare has a market capitalization of about $ 40 billion.
VMware shares rose 18.3% to $ 113.20 in pre-market trading on Monday. Broadcom is down 2.3%.
President Joe Biden’s remarks that he was considering reducing tariffs on China also raised market sentiment. The Trump administration has imposed these tariffs.
Investors will be watching minutes from the latest Federal Reserve meeting this week to measure the central bank’s next move on interest rates. This is pushing at a higher rate in an effort to cool historically high inflation. Some economists have expressed concern that the Fed could move too aggressively and push the United States into recession.
After meeting with Japanese Prime Minister Fumio Kishida on Monday, Biden said it was not inevitable that the US economy would enter recession.
Also expected this week are first-quarter gross domestic product, sustainable product orders and personal spending data for April, the Fed’s preferred inflation measure.
There are other stocks moved here on Monday:
Zoom video
(ZM) before the company’s financial first-quarter earnings report, which was scheduled after Monday’s closing bell. Shares of the video conferencing company have lost all their Covid-era profits, the stock has fallen nearly 50% so far this year and more than 70% in the last 12 months.
Chinese electric vehicle manufacturer
Expang
(XPEV) Analysts expect sales of about সেন্ট 1.1 billion in the first quarter to lose 30 cents per share. XPeng reported before the market opened on Monday. The stock fell 2.8% in premarket trading.
Write to Joe Welfel at [email protected]
