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Traders work on the floor of the New York Stock Exchange.
Spencer Platt / Getty Images
Stock futures traded sharply higher on Tuesday after investors returned from the three-day weekend, feeling a little more optimistic after last week’s sharp sell-off.
Contracts related to
increased by 494 points, or 1.7%, to 30,363,
futures rose 1.9% and
futures rose 1.9%. Yields on 10-year bonds rose to 3.277% from 3.238% on Friday.
Shares closed mostly up on Friday after a brutal week. The Dow ended the week with a 4.8% drop, its worst one-week drop in October. 30, 2020. The blue chip index has fallen for 11 of the last 12 weeks. The S&P 500 fell 5.8 percent last week, its worst since late March 2020. The tech Nasdaq fell 4.8 percent last week and fell 10 of the last 11 weeks.
Markets in the United States were closed on Monday due to compliance with The Eleventh National Independence Day.
On Tuesday, President Joe Biden’s comments raised the spirits, saying a US recession was not “inevitable”. The president’s comments came Monday after a conversation he had with former Treasury Secretary Larry Summers, who believes a recession is imminent.
“No, I don’t think so,” Biden said, asking if the United States was heading for a recession. “I spoke to Larry Summers this morning and there is nothing inevitable about the recession. Finance Minister Janet Yellen also said the same over the weekend, although US consumers have been affected by rising borrowing costs, high inflation and rising energy prices.
Speeches to Congress by Federal Reserve Chairman Jerome Powell will be closely monitored on Wall Street this week. The Fed is raising interest rates in a bid to cool inflation, which is at its 40-year high. Some investors fear that an aggressive tightening of Fed policy will lead to a recession.
The central bank raised its key interest rate by 0.75 percentage points last week and is expected to do so again at its next meeting in July.
St. Louis Fed President James Bullard downplays fears of a severe recession, saying Monday the US economy should continue to grow over the next few months. But he warned that high inflation posed a serious risk to the US economy.
Here are some stocks on Tuesday:
Twitter
(ticker: TWTR) rose 1.9% to $ 38.50 in pre-market trading. Elon Musk told an audience at the Qatar Economic Forum in Doha that he would “move the product” in
Twitter
and reiterated that he did not necessarily want to serve as CEO of
Twitter
after completing the acquisition of the social media company.
Tesla
(TSLA) rose 3.1% after Musk told Bloomberg that job cuts at the electric vehicle company would cut about 3.5% of
Tesla
C ‘
total number of employees.
Mondelez
(MDLZ) rose slightly after announcing it would acquire energy bar maker Clif Bar for about $ 2.9 billion.
Write to Joe Woelfel at joseph.woelfel@barrons.com
