US Stocks Poised to Extend Significant Rebound
The major US index futures are currently pointing to a modestly higher open on Monday, with stocks poised to extend the significant rebound seen last Friday.
Traders may continue to look to pick up stocks at relatively reduced levels following the weakness seen throughout most of the previous week.
Buying interest may be somewhat subdued, however, as traders look ahead to the release of earnings news from a number of big-name companies this week.
General Electric (GE), Johnson & Johnson (JNJ), Verizon (VZ), Microsoft (MSFT), AT&T (T), Boeing (BA), IBM Corp. (IBM), Tesla (TSLA), Intel (INTC) and American Express (AXP) are just some of the companies due to report their quarterly results in the coming days.
Reports on durable goods orders, fourth-quarter GDP, new home sales and personal income and spending are also likely to attract attention later in the week.
Additionally, next week’s Federal Reserve meeting is likely to remain on investors’ minds amid ongoing uncertainty about the outlook for interest rates.
The Fed is widely expected to further slow the pace of rate hikes to 25 basis points at its next meeting, but the possibility of additional rate hikes continues to hang over the markets.
Stocks moved sharply higher over the course of the trading session on Friday, regaining ground after posting steep losses for two straight days. Tech stocks helped lead the rebound, resulting in a particularly strong gain by the tech-heavy Nasdaq.
The major averages saw further upside going into the close, ending the session at their best levels of the day. While the Nasdaq spiked 288.17 points or 2.7 per cent to 11,140.43, the S&P 500 surged 73.76 points or 1.9 per cent to 3,972.61, and the Dow jumped 330.93 points or 1.0 per cent to 33,375.49.
For the holiday-shortened week, the major averages turned in a mixed performance. The Nasdaq climbed by 0.6 per cent, but the S&P 500 slid by 0.7 per cent, and the Dow tumbled by 2.7 per cent.
The rebound on Wall Street came as traders looked to pick up stocks at relatively reduced levels following recent weakness, which reflected ongoing concerns about the outlook for the economy and interest rates.