Stock futures bounce as investors assess the start of the new quarter, an indicator of bond market stagnation

Stock futures rose early Thursday as investors evaluated a new quarter of trading and a worrisome bond market slump index.

Investors were also waiting for the official jobs report for March, which the Labor Department will release at 8:30 a.m. ET on Friday.

Dow futures gained 90 points, or 0.3%. S&P 500 futures rose 0.2% and Nasdaq 100 futures rose 0.3% to begin the first trading session of the second quarter.

The Dow Jones Industrial Average on Thursday fell to Close the first negative quarter shares in two years, with losses accelerating in the last trading hour. The Dow Jones Industrial Average fell 550.46 points, or 1.56%, to 34,678.35 points. The S&P 500 fell 1.57% to 4530.41, and the Nasdaq Composite fell 1.54% to 14220.52.

The three major averages posted their worst quarter since March 2020. The Dow and S&P 500 indexes are down 4.6% and 4.9%, respectively, over the period, and the Nasdaq is down more than 9%. Stocks returned late in the March quarter but after sharp declines from high interest rates and inflation that marked the first part of the year.

Stocks are now getting rid of the slack signal from the bond market that was triggered after the closing bell on Thursday. Treasury yields for 2 years and 10 years upside down for the first time Since 2019. For some investors, this is a sign that the economy is heading into a potential recession, although the inverted yield curve does not predict exactly when this will happen and history shows it could take more than a year or more.

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“I think everyone needs to acknowledge the fact that we’re clearly going to move into a slower economic environment,” Shannon Sacosia, chief investment officer at Boston Private Wealth, told CNBC.

“You need to get earnings growth from somewhere, and if the tailwinds aren’t secular, like fiscal spending and monetary policy laxity, you have to look at growth elsewhere. I think we’ll see some real nuances in trading over the next three months or so. towards that while people are looking for that growth against this more difficult economic background.”

a Friday’s strong jobs report It could give the Federal Reserve more confidence to keep its aggressive plan to raise interest rates in place this year to stifle inflation without fearing the economy will slow down too much. Economists expect about 490,000 jobs to be added in March, according to a Dow Jones estimate, after adding 678,000 jobs in February. The unemployment rate is expected to fall to 3.7% from 3.8%, according to Dow Jones.

Jim Stop rebounded more than 10% In extended trading after the video game and meme retailer announced their intention to split the stock.

Energy prices fell on Thursday after the White House said it would release a file Unprecedented amount of oil of the strategic petroleum reserve. Up to one million barrels of oil will be released per day for the next six months.

Other key indicators to watch include the ISM Manufacturing Index and the Construction Spending report, both of which will be released at 10 AM ET on Friday.

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