Stock futures saw slight gains in overnight trading Sunday following a strong week for the S&P 500, which had its best week of 2024. Futures tied to the S&P 500 were up 0.1%, while Dow Jones Industrial Average futures added 30 points, or 0.1%. Nasdaq-100 futures also edged up by about 0.2%. The market had a volatile stretch, with the S&P 500 rallying 3.9%, the Nasdaq Composite adding 5.2%, and the Dow gaining 2.9%.
Last week’s performance was a result of a rebound after a rough start to August, where disappointing data sparked recession fears and concerns about the Federal Reserve being behind on rate cuts. A global sell-off pushed the S&P 500 to its worst day since 2022 on August 5th. However, strong retail sales, initial jobless claims, and positive results from Walmart helped boost the market and restore some confidence.
The economy seems to be on track for a soft landing scenario, with July’s consumer price index showing the 12-month inflation rate slowing to 2.9%, the lowest in over three years. Investors are now looking forward to Fed Chair Jerome Powell’s speech at Jackson Hole, Wyoming on Friday for more clarity on the outlook for rate cuts. Additionally, minutes from the Fed’s recent meeting are set to be released on Wednesday, providing further insights into the monetary policy.
The Democratic National Convention starts on Monday, adding to the events that investors are monitoring. Earnings season continues with results from Palo Alto Networks and Estee Lauder scheduled for Monday. The overall sentiment in the markets seems to be improving, with hopes for a more stable recovery after the recent volatility. The market needed positive news to begin the recovery process, and last week’s rally was a step in that direction.
Despite the recent ups and downs, Wall Street remains cautiously optimistic about the future outlook. The market is reacting to economic indicators and data releases, looking for signs of stability and growth. The ongoing earnings reports, Fed announcements, and speeches from key policymakers are all contributing to the market sentiment. As investors navigate through the uncertainties, they are seeking reliable information to make informed decisions.
Overall, the recent performance of stock futures and the market as a whole indicates a gradual recovery from the turbulence earlier in the month. The positive news from last week, coupled with upcoming events and data releases, suggest that the market may be on a path towards stability. Investors are closely monitoring developments and are preparing for potential shifts in market dynamics. The week ahead promises to be eventful, with key earnings reports, Fed announcements, and other significant events shaping the market sentiment.
