Stock Futures Surge Overnight Following a Crazy Week in the Green

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Overnight trading on Sunday saw stock futures rise as investors readied for the final week of a tumultuous September.

Dow Jones Industrial Average futures increased by 80 points. S&P 500 futures increased by 0.2 percent, while Nasdaq 100 futures remained relatively unchanged.

Wall Street is coming off a roller-coaster week amid a plethora of concerns, ranging from China’s Evergrande’s debt issue to the Federal Reserve’s warning of monetary stimulus reductions and Beijing’s assault on cryptocurrencies. Nonetheless, the major averages recovered from heavy losses earlier in the week and managed to scrape out minor gains.

The Dow Jones industrial average ended the week 0.6 percent higher, snapping a three-week losing run. The S&P 500 gained 0.5 percent last week, while the technology-heavy Nasdaq Composite gained 0.02 percent.

Dow volatility

Daily point change in the Dow Jones Industrial Average, week of Sept. 20

“Equity markets continue to be a tug-of-war between bulls and bears,” Mark Hackett, Nationwide’s chief investment research officer, wrote in a note. “The market recovery demonstrated that the buy-on-discount mentality had persisted.”

September has thus far lived up to its reputation for volatility and weakness, with all major averages seeing minor losses. The S&P 500 is down 1.5 percent, putting it on course to register its first monthly loss since January. The broad equity benchmark is around 2% below its September 2 record high. For the month, the Dow is down 1.6 percent, while the Nasdaq is down 1.4 percent.

“We remain cautious in the near term, particularly as we enter the traditionally weakest period of the year (late September — mid-October),” Raymond James Chief Investment Officer Larry Adam wrote in a note. “However, given ongoing healthy economic growth, our preference is to maintain current stock exposure or to add on weakness.”

Investors are closely monitoring Washington’s progress in a bid to avert a government shutdown, a US debt default, and the likely collapse of President Joe Biden’s expansive economic programme.

House Speaker Nancy Pelosi said Sunday that she expects the bipartisan $1 trillion infrastructure measure to pass this week, but that voting on the legislation may be delayed from its original Monday deadline.

Congress must enact a new budget by the end of September to avert a government shutdown, and lawmakers must also find a way to raise or suspend the debt ceiling by October to avoid the United States defaulting on its debt for the first time.

Published by Zack Baharum

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