Dow futures soar 200 factors, as shares rebound from the common’s worst week since October


Stock futures were higher on Monday as the market tried to rebound from the worst week in the Dow Jones Industrial average since October.

Futures on the Dow rose 205 points. S&P 500 futures gained 0.5% while Nasdaq 100 futures added 0.5%. The overnight action was volatile as Dow futures lost about 200 points earlier.

A broad group of stocks were higher in pre-trading hours. Commodity stocks, which were hit hard last week, rebounded, including Exxon and Chevron, which each gained about 1% in pre-trading hours. Reopening games like Royal Caribbean and Boeing were a bit higher. The banks also appeared to be recovering.

And big tech companies like Alphabet and Tesla won early trading.

US stocks fell last week as investors digested new Federal Reserve economic forecasts and worried rate hikes could come earlier than expected. The Fed raised its inflation expectations on Wednesday and forecast interest rate hikes in 2023. The President of the St. Louis Fed, Jim Bullard, said in the “Squawk Box” of CNBC on Friday that it was natural for the central bank to tend a little more “Hawkish” and to see higher interest rates as of 2022.

The Dow fell 3.5% last week, while the S&P 500 and Nasdaq fell 1.9% and 0.2%, respectively, over the course of the week.

The U.S. market was resilient on Monday amid an overnight decline in the Asian market and a sharp decline in Bitcoin. The Japanese Nikkei 225 fell as much as 4% at one point on Monday, with automakers Nissan and Honda taking the lead. It would end up about 3% lower.

Meanwhile, Bitcoin fell more than 6% to $ 33,000 as China continued crackdown on cryptocurrency mining.

Sectors tied to the economic recovery drove stocks down last week. The S&P 500’s financial and raw materials sectors lost more than 6% for the week, while the energy sector was down more than 5% and the industrial sector was down more than 3%.

These sectors should rebound on Monday. The Financial Select Sector SPDR Fund rebounded 0.3% in pre-trading. The Materials Select Sector SPDR Fund was up 0.6%.

The yield curve for government bonds flattened last week, hit the banks and sent a signal of a possible economic slowdown. Yields on shorter-term government bonds such as the 2-year bond rose – reflecting expectations for the Fed rate hike. Longer-term returns like the 10-year note fell – a sign of less optimism about economic growth.

Investors await public appearances from Fed members on Monday. Bullard and Dallas Fed President Robert Kaplan will speak virtually at an official monetary and financial institution forum at 9:00 am ET. New York Fed President John Williams is expected to make remarks at an event organized by the Midsize Bank Coalition of America on Monday afternoon.