Traders stand on the floor of the New York Stock Exchange on July 15, 2021.
Source: New York Stock Exchange
U.S. stock futures were flat on Sunday night after major averages fell below their weekly highs so far this year.
Futures, which track the Dow Jones Industrial Average, rose 13 points, or 0.04%. S&P 500 futures rose 0.03% and Nasdaq 100 futures remained below the flat line at 0.01%.
All major stock averages are coming off their best weeks of the year so far, giving a positive impression heading into November trading. The Dow Jones Industrial Average rose 5.07% to end the week at 34,061.32, its best week since October 2022. The S&P rose 5.85% to 4,358.34 and the Nasdaq Composite ended the week 6.61% higher at 13,478.28. It was the best week for both indexes since November 2022.
“Oversold conditions, solid earnings, expectations for the end of the Fed’s interest rate hike campaign, and a significant drop in interest rates have brought buyers back into the market,” said Adam Turnquist of LPL Financial. said.
Weak monthly employment data also pushed bond yields lower and boosted stock prices.
Economic data and corporate earnings are expected to be weak over the next week, but seasonal tailwinds could further spur stock prices to recover. November is the S&P 500’s best performing month, according to the Stock Traders Almanac. Turnquist noted that this also marks the beginning of the best six-month return period for the market since 1950. Since then, the S&P 500 has produced an average return of 7% from November to April, he said.
Earnings season is winding down, with 400 S&P 500 companies already reporting their quarterly results. Investors can look forward to updates this week from Walt Disney Co., Wynn, MGM Resorts, Occidental Petroleum and DR Horton.
Meanwhile, traders are also keeping an eye on Federal Reserve Chairman Jerome Powell, who is scheduled to speak twice in the coming days. Last week, the central bank kept interest rates on hold for the second consecutive meeting as bond yields fell, giving investors hope that the rate hike campaign may be over.
“If you look at the totality of the data that we’ve had over the past few weeks, it shows a very strong picture overall,” Bharat Ramamurti, former deputy director of the National Economic Council, said on CNBC’s “Closing Bell: Overtime.” Told. Friday. “I would be surprised if the Fed were to raise rates again this year, and this would probably be the top of the rate hike cycle.”
Federal Reserve President Lisa D. Cook is scheduled to speak on Monday. Later this week, New York Fed President and CEO John Williams, Atlanta Fed President Raphael Bostic, Richmond Fed President Thomas Barkin, Dallas Fed President Laurie Logan, and others , several Fed officials are expected to speak publicly as well.
