Stock futures rise to extend past gains


Stock futures opened slightly higher on Monday night to extend earlier gains, with stocks recovering concerns about the way forward for monetary policy last week.

S&P 500 contracts edged up. Dow futures also rose, after the 30-stock index surged the most since March earlier today.

Monday’s session saw traders retreat into some of the cyclical areas of the stock market that came under the most pressure last week, when the outlook for increased inflation from the Federal Reserve raised fears that higher prices might finally weigh on on economic recovery. However, according to some traders, now that the Fed has signaled it will act to stem rapidly rising inflation, some of the long-term appeal of cyclical trading may be lifted.

“I think the question is going to arise here is that our price was very accommodating when the Fed entered. We now seem to have a pretty aggressive price. Obviously the right result is somewhere in the middle.” Yahoo Finance, Stuart Kaiser, head of equities for UBS derivative research, said. “So will energy benefit from a rebalancing of these expectations?” Potentially. I think right now though, what we’re seeing is that people are readjusting their expectations, a little less excited about these industries, in quotes, ‘reflation’ and maybe focused a bit more on tech to the moment.”

Others have offered a similar point of view.

“One of the things we are watching very closely is how much inflationary pressure would tip some growth stocks,” Ann Berry, chief investment officer at Wheelhouse, told Yahoo Finance on Monday. “What we saw today, which is the upward movement again on the Nasdaq, the upward movement again on some of the key tech stocks… is very much in line with what we expected – that is, as people watch where to put their capital in an environment of rising inflation, this return to growth seems natural. “

“We’re really looking now as people post announcements on what the second half of the year looks like, we’re looking at what new business models are likely to persist in this post-COVID environment,” she added.

As the second quarter earnings season accelerates over the next two weeks, investors are also bracing for a potentially repeat performance of strong corporate earnings, with earnings boosted by vaccinated and thrifty consumers eager to get out and about. spend. So far, analysts expect S&P 500 earnings to rise 61.9% year-on-year, FactSet data shows – UBS Kaiser estimate could still “need to be revised upwards “.

“I continue to believe that earnings will outperform. Expectations are getting better and better managed. But if you look at the explosion we had in the first quarter, I think there is enough momentum to continue, this that’s going to make stocks a worthwhile investment throughout the year, ”Mitch Roschelle, founding partner of Macro Trends Advisors LLC, told Yahoo Finance.“ There will likely be a correction somewhere during the year because there always are, but right now, heading into earnings season, I’m seeing tailwinds and not headwinds. ”

6:12 p.m. ET Monday: Stock futures add to the gains

Here’s where the markets were trading Monday night:

  • S&P 500 Futures Contracts (ES = F): 4,218.75, +5 points (+ 0.12%)

  • Dow Futures (YM = F): 33,802.00, +41 points (+ 0.12%)

  • Nasdaq Futures (NQ = F): 14,140.5, +10.5 points (+ 0.07%)

NEW YORK, NY – JUNE 02: Exterior view of the New York Stock Exchange and Wall St. as a new Organon company start trading next Thursday in New York on June 02, 2021. Organon is looking to expand to provide treatment for other conditions unique to women, around 80% of the new company’s income will come from outside the United States (Photo by Kena Betancur / VIEWpress)

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

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