Bargain Hunting May Lead To Strength On Wall Street
By Investors Hub
The major U.S. index futures are pointing to a modestly higher opening on Friday following the sell-off seen in the previous session.
Bargain hunting may contribute to early strength on Wall Street after the steep losses seen in the previous session dragged the major averages down to their lowest levels in about two months.
Traders may also react positively to news that lawmakers managed to end a brief government shutdown with a bill raising spending caps and funding the government until March 23rd.
Buying interest may be somewhat subdued, however, as traders continue to express concerns about the outlook for interest rates.
Following the lackluster performance seen in the previous session, stocks saw substantial weakness during trading on Thursday. With the sell-off, the major averages fell to their lowest closing levels in about two months.
The major averages finished the day at their lows of the session. The Dow plummeted 1,032.89 points or 4.2 percent to 23,860.46, the Nasdaq plunged 274.83 points or 3.9 percent to 6,777.16 and the S&P 500 dove 100.66 points or 3.8 percent to 2,581.00.
The sell-off on Wall Street reflected continued concerns about the outlook for interest rates amid signs of rising inflation.
Traders have recently expressed worries that the Federal Reserve may be forced to raise interest rate by more than previously anticipated.
Concerns about another government shutdown may also have contributed to the steep decline seen on Wall Street on Thursday.