U.S. Stock Futures Edge Higher

view original post

U.S. stock futures edged higher, pointing to muted gains for major indexes after the S&P 500 closed in a bear market for the first time since 2020.

Futures tied to the S&P 500 added 0.3% after the broad-market index tumbled 3.9% on Monday. Nasdaq-100 futures climbed 0.6%, suggesting a moderate rise in technology stocks after the opening bell. Dow Jones Industrial Average futures inched up 0.2%.

Global stocks have come under pressure in recent weeks on concerns that major central banks will have to move more aggressively than expected to combat inflation. The latest data release on consumer prices in the U.S. further stoked these fears, as it rose from the previous month to 8.6% and reached the highest level in more than four decades. The S&P 500 declined for the past four straight trading sessions, losing over 10%. The index is down nearly 22% from its last record high.

“I wouldn’t necessarily read a lot into a sort of mini reversal. Things got really oversold and now people are just going to wait for the Fed,” said Colin Graham, head of multiasset strategy at Robeco.

The Federal Reserve is set to release a monetary policy decision on Wednesday, after a two-day meeting. The Wall Street Journal reported on Monday that the policy makers are considering a surprise 0.75-percentage-point interest-rate increase.

Read the full article.