U.S. stock futures inched higher, putting the S&P 500 index on track to exit bear market territory after flirting with such levels for a while. volatile trading session Friday.
S&P 500 index futures rose 0.4% on Monday. At some point on a Friday, the S&P 500 slide so far it is on track to close at least 20% below the January high — what should have been considered bear market—Before reclamation. Contracts for the tech-focused Nasdaq-100 rose 0.3% on Monday and futures for the Dow Jones Industrial Average rose 0.6%.
Stocks have slid in recent weeks as investors debate how aggressive the Federal Reserve will be. interest rate increase to control rising inflation. Price pressure has subsided some corporate incomebut money managers are also concerned that tightening financial conditions is too risky to weigh on economic growth.
Inflation concerns have been exacerbated in recent months as China implemented lockdown measures to prevent the spread of Covid-19, adding to the strain on supply chains. Russia’s war against Ukraine also drives European countries away from Moscow’s oil and gas, driving up prices.
Hugh Gimber, global market strategist at JP Morgan Asset Management, said: “This year, we are addressing a number of issues, which in themselves would normally be the top story in any given year, ” said Hugh Gimber, global market strategist at JP Morgan Asset Management. “However, the market is dealing with all of them at once.” This has increased volatility, he said.
In the bond market, the yield on the benchmark 10-year Treasury note rose to 2.815% from 2.785% on Friday. Yields and prices move inversely.
Brent crude, the international standard for oil, rose 1.2% to $113.95 a barrel.
Abroad, the continent-wide Stoxx Europe 600 rose 0.9%. Shares of the Danish pharmaceutical group Bavarian Nordic, the maker of the smallpox vaccine, rose 5% in Copenhagen trading. Public health officials say smallpox vaccine can protect against monkey pox, a viral disease that spreads mainly among rodents in parts of West and Central Africa. Recently there has been a series of case of monkeypox in humans globally.
In Asia, the major indexes closed mixed. Japan’s Nikkei 225 gained 1%, while South Korea’s Kospi gained 0.3%. China’s Shanghai Composite is flat and Hong Kong’s Hang Seng is down 1.2%.
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