Stocks Watch
Dow Futures Ascend Betting on for Less Aggressive Fed?
June 27, 2022, at 1:29 PM
Stocks continued their momentum from a rally last week and were rising Monday with fears easing over more aggressive interest-rate increases from the Federal Reserve.
Futures for the Dow Jones Industrial Average DJIA +2.68% rose 160 points or 0.5% after the index rallied 823 points on Friday to close at 31,500. S&P 500 SPX +3.06% futures signaled a start 0.6% higher with the tech stock-heavy Nasdaq COMP +3.34% poised to soar 0.8%; the S&P 500 and Nasdaq surged 3.1% and 3.3% on Friday, respectively.
Strong morning gains in Europe and a rally across Asian markets after China further eased COVID-19 restrictions drove the MSCI’s benchmark for global stocks up for a third straight session, rising 0.5% by 0851 GMT.
Investors hope the oil prices slide from three-month peaks hit earlier in June could ease price pressures and allow the U.S. Federal Reserve to tighten policy less aggressively than initially feared, reducing the risk of an economic recession.
Traders said oversold market conditions and month-end portfolio rebalancing also contributed to the bounce, although they expected more volatility ahead as the second-quarter earnings seasons approached
The market remains focused on the trade-off between the policy response to high inflation and fears of a hard landing.
There are ongoing discussions as to whether long-end yields have peaked, however, we would not yet expect 10-year yields to fall materially or sustainably below 3%.
