S&P 500 futures up 1% as market recovers from brutal week

Traders based on the NYSE, June 16, 2022

Source: NYSE

Equity futures rose overnight on Monday after a brutal week after investors assessed the more aggressive Federal Reserve and growing chances of recession.

Dow Jones Industrial Average futures scored more than 250 points. S&P 500 futures rose 1.1 percent and Nasdaq 100 futures also rose 1.1 percent. US stock markets closed earlier Monday, June 16.

The main average has just suffered its 10th losing week out of 11 due to fears that the central bank will aggressively raise interest rates to curb inflation at the risk of causing an economic downturn. The S&P 500 fell 5.8 percent last week for its biggest weekly loss since March 2020, sinking deeper into the bear market. The equity ratio is already more than 23% of its record high since early January.

The Dow with blue chips fell 4.8% last week, falling below 30,000 for the first time since January 2021 last week. The tech Nasdaq Composite fell 4.8 percent last week, down 33 percent from a record high.

“The recent downturn in stock markets and changes in investor sentiment make the bottom line harder to craft,” said Mark Hackett, head of investment research at Nationwide. “Investors are acting emotionally, but the fundamentals are beginning to follow the weakness in the technical characteristics.”

Fed Chairman Jerome Powell will testify before Congress on Wednesday and Thursday. Its emergence comes after a recent three-quarters-percentage rate hike, the central bank’s biggest increase since 1994.

Investors will monitor inputs, including sales of existing homes, on Tuesday to assess the health of the economy. Recent data showing low consumer confidence, falling retail spending and cooling in the housing market fuels fears of a recession as the Fed struggles with inflation at 41-year highs.

Meanwhile, cryptocurrencies continued their journey to an amusement park. bitcoin fell on new bottom for 2022 of $ 17,601.58 over the weekend before climbing back above the $ 20,000 mark on Monday. The world’s largest cryptocurrency by market capitalization is 70% below its highest level of all time in November.

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