Inventory futures have been higher in early morning trading Monday following a volatile week on Wall Road as investors spy a key tournament where the Federal Reserve may hint at potentialities for tapering stimulus.
Futures tied to the Dow Jones Industrial Average jumped around 140 points. S&P 500 futures and Nasdaq 100 futures have been both also in certain territory.
Major averages have been coming off a losing week as investors grew anxious that the Fed’s potential circulation to drag back monetary stimulus may gradual down the financial recovery that is already challenged by the spread of the delta Covid-19 variant.
The blue-chip Dow fell 1.1% last week, whereas the S&P 500 declined nearly 0.6%, breaking a two-week winning streak. The tech-heavy Nasdaq dipped 0.7% during the week.
“We suspect investor conviction is being challenged by the potential for upcoming monetary coverage changes, shifting development vs. value rotations, and a rising trajectory of latest coronavirus cases,” Craig Johnson, technical market strategist at Piper Sandler, said in a reveal.
Traders are eagerly awaiting the Jackson Gap symposium for clues on the Fed’s timeline for dialing back its $120 billion a month bond-buying program. The tournament takes place virtually on Thursday and Friday.
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For the month of August, major benchmarks are poised to post modest gains. The S&P 500 is up 1.1% month to date, whereas the blue-chip Dow has gained 0.5% and the Nasdaq has climbed 0.3%.
“August is a historically volatile month for markets and this year is rarely any diverse, with investors at the moment climbing multiple walls of worries,” said Rod von Lipsey, managing director at UBS Private Wealth Management. “Upticks in Covid-19 cases and a downward spiral in Afghanistan are creating a crisis of self assurance, at a time when many investors are on holiday.”
Meanwhile, bitcoin topped the $50,000 level on Sunday to touch a extra than 3-month high. It was trading at $50,120.50 as of 12: 24 a.m. ET Monday, according to data from CoinDesk.