Stock index futures rose Monday, indicating a positive start for Wall Street after the Dow Jones Industrial Average and the S&P 500 fell in a row for a week.
What do major indices do?
Futures on the Dow Jones Industrial Average
YM00, + 0.34%
rose 117 points, or 0.3%, to 34,270.
S&P 500 futures
ES00, + 0.46%
rose 18.45 points, or 0.4%, to 4,170.25.
Nasdaq 100 futures
NQ00, + 0.62%
gained 76 points, or 0.6%, to trade at 13,481.
DJIA, + 0.36%
last week fell 0.5% during the S&P 500
gave up 0.4%, with both indices posting their second consecutive weekly decline. The Nasdaq Composite
recorded a 0.3% increase and recorded four consecutive weekly decreases.
What is driving the market?
Rising inflationary pressures are blamed for increased volatility in equity markets after data earlier this month showed that the consumer price index rose 4.2% yoy in April, up 4.2% hotter than expected. This raised concerns that the Fed might move earlier than expected to withdraw its monetary policy.
Most Fed officials have said it is too early to consider withdrawing money support.
Meanwhile, last week’s stocks largely mirrored the previous week’s performance and fell early before bouncing back in the late week, said Sam Stovall, CFRA’s chief investment strategist.
“Since the market low on May 19 failed to break the previous week’s low, it was viewed as a successful retest of that earlier low, suggesting that the recent sell-off had begun and a near-term rally was likely on hand,” said Stovall in a note.
Talks on President Joe Biden’s infrastructure boost continue. The White House on Friday The size of the proposal has been reduced from $ 2.3 trillion to $ 1.7 trillion in an effort to win Republican support.
Efforts to prevent the Senate Republicans from paying off so far, according to news reportsRaise doubts about the prospect of a deal ahead of a Memorial Day destination. Democrats could seek self-employment if the stalemate persists using budgetary voting procedures.
The volatility in the cryptocurrency markets also remains in focus. Bitcoin
BTCUSD, + 11.55%
extended a weekend slump to drop as much as possible 50% from its all time high over $ 60,000, which was set earlier this week. Bitcoin is up around 10% in the last promotion.
Which companies are in focus?
- Cabot Oil & Gas Corp.
COG + 0.34%
and Cimarex Energy Co.
said Monday that they reached an agreement on an all-stock merger of equals in a deal with an enterprise value of approximately $ 17 billion. Cabot shares rose 1.7% in premarket trading, while Cimarex shares rose 0.3%.
- Virgin Galactic Holdings Inc.
SPCE + 6.36%
On Saturday he made his first rocket-propelled flight from New Mexico to the edge of space in a manned shuttle. The shares rose 20%.
- Singular Genomics Systems Inc.
California-based biotechnology that uses next-generation sequencing (NGS) to develop products for researchers Establish conditions for going public, where it could be worth up to $ 1.5 billion. The company plans to raise up to $ 187 million as it is offering 8.5 million shares at an IPO price between $ 20 and $ 22 per share. The stock is expected to trade on the Nasdaq under the symbol “OMIC”.