US stock futures rose to push the S&P 500 out of the bearish market zone after flirting with such levels in a volatile trading session on Friday.
The S&P 500 futures added 0.6% on Monday. At one point on Friday, the S&P 500 was still slipping and was about to close at least 20% below its January high – which was considered a beer market – before returning to the ground. Technology-focused Nasdaq-100 contract rose 0.5% on Monday and the Dow Jones Industrial Average futures rose 0.3%.
Stocks have declined in recent weeks as investors debate how aggressively the Federal Reserve will raise interest rates to control high inflation. Price pressures have eroded some corporate earnings, but money managers are also concerned that the tightening of financial conditions poses too much risk to economic growth.
Inflation worries have intensified in recent months as China imposes a lockdown to curb the spread of Covid-19, adding to the pressure on the supply chain. Russia’s war against Ukraine has pushed European countries away from Moscow’s oil and gas, raising prices.
Hugh Gimber, Global Market Strategist at JPMorgan Asset Management, said: “Yet markets have to deal with them at the same time.” It has lent itself to higher instability, he said.
In the bond market, the benchmark 10-year Treasury note yield stood at 2.785% to 2.821% on Friday. Yields and prices go upside down.
Brent crude, the international benchmark oil, added 1.1% to 113.80 a barrel.
Abroad, the pan-continental Stoxx Europe 600 rose 0.4%. The European Central Bank is likely to raise its key interest rate to zero or above by September, President Christine Lagarde said in a blog post on Monday, drawing a line under an eight-year test of negative interest rates amid record-high inflation and growing concerns. About the weakness of the euro currency.
The euro traded up 1.1% against the dollar at 0 1.0674.
In Asia, major indicators closed with mixed performance. Japan’s Nikkei 225 added 1%, while South Korea’s Kospi rose 0.3%. China’s Shanghai Composite was flat and Hong Kong’s Hang Seng declined 1.2%.
Write to Caitlin Ostroff at [email protected]
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