U.S. Stock Index Futures Strengthened Their Positions
U.S. stock index futures rose on early Monday after the S&P 500 posted its second straight negative week the previous week. Futures contracts tied to the Dow Jones Industrial Average suggested an opening gain of about 100 points. S&P 500 futures added 0.5% and Nasdaq-100 futures were up the most, gaining 0.8%.
Tech stocks strengthened their positions in the premarket, shaking off another rough period for bitcoin over the weekend as the cryptocurrency market bounced on early Monday. It edged higher on Monday after a tough week during which billions of dollars were wiped off the value of bitcoin and ether.
Shares of Tesla, a big holder of the cryptocurrency, added 0.5% in premarket trading despite the bitcoin volatility. Coinbase gained 2% in premarket trading as bitcoin stabilized on Monday as Goldman started Coinbase with a buy rating.
Stocks benefiting from the economic reopening added in premarket trading as well. Shares of Gap, Carnival as well as United Airlines were higher.
The previous week saw the Dow post its fourth negative week in five, nonetheless, the losses were minor. The Dow fell just 0.5% on the week, while the S&P dropped just 0.4%. Meanwhile, Nasdaq Composite added 0.31% last week, snapping a four-week losing streak.
Stock market and various factors
There is no lack of factors that have the potential to affect the stock market. Despite last week’s collapse in cryptocurrency markets and rather hawkish FOMC minutes, another equity dip was bought by investors.
The Federal Reserve hinted at its April meeting that easy monetary policies could be reconsidered if the country’s economy continues to show signs of rapid improvement.
Looking ahead, there are several retail companies set to report quarterly earnings in the coming week. Analysts are waiting for the information from Nordstrom, Urban Outfitters, Gap, and Ulta. A number of technology companies will also release quarterly updates, including Nvidia, Snowflake, and Salesforce.
On the economic data front, consumer confidence, as well as new home sales, will be released on Tuesday.
Heading into the last full trading week of the month, the Dow is on track to post a gain for the last month of spring. The S&P is on course to snap a three-month winning streak. The Nasdaq Composite, which is down more than 3% for the month, is on course to snap its longest monthly winning streak since January 2018, with its first negative month in seven.
