Traders on the floor of the NYSE, August 4, 2022.
Stock futures rose in early Monday trading as investors awaited big earnings reports.
Futures for the Dow Jones industrial average rose 277 points, or 0.9%. S&P 500 futures and Nasdaq 100 futures rose 1.1% and 1.3%, respectively.
Monday’s moves came as the British pound rose due to policy changes by the UK government. Prime Minister Liz Truss scrapped a tax cut plan and sacked her finance minister last week. There were also expectations that another policy U-turn would be announced in the UK later on Monday. The pound traded 0.9% higher at $1.127 per US dollar.
The S&P 500 lost 1.6% last week, coming off its fourth negative week in five. Hotter than expected Inflation reading That triggered wild price swings in markets as investors readjusted their expectations for the Federal Reserve’s impending rate hikes.
“As inflation rises longer and the central bank hikes further, risks increase, with the cumulative effect of policy tightening pushing the US economy into recession, undermining the outlook for corporate earnings,” said Mark Hafel, CIO of UBS Global Wealth Management. A hint.
Meanwhile, the third quarter earnings season has begun. Investors are watching to see if corporate America will make significant downward revisions to their outlook in the face of stubbornly high inflation and an economic slowdown.
Bank of America Scheduled to be announced on Monday before Goldman Sachs The numbers will be released on Tuesday morning. JP Morgan And Wells Fargo reported Solid Results Last week, during Morgan Stanley Stock trading returns are disappointing.
Several notable tech names are also reporting this week, including Netflix, Tesla And IBM. Other big companies on investors’ radar include Johnson & Johnson, United Airlines, AT&T, Verizon and Procter & Gamble.