US stock futures jump on China’s interest rate cut
US stock futures jump on China’s interest rate cut

US stock futures jump on China’s interest rate cut

Global equities and US stock futures rose and recovered some distance after the S&P 500 was close to falling into a bear market and the Chinese central bank lowered a key interest rate.

Futures linked to the S&P 500 rose 1.1%, suggesting that the broad market index may rise again after the closed 0.6 per cent. and on Thursday reached its lowest level since March 2021. Nasdaq-100 futures rose 1.4%, indicating increases in technology stocks after the opening bell. Dow Jones Industrial Average futures rose 0.9 percent.

Shares have come under pressure this week of concerns about global growth. Investors worried about how aggressively the Federal Reserve would react to the onslaught of high inflation and Covid-19 lockdowns in China that limited economic activity and narrowed supply chains, leading to a sale.

The S&P 500 is about to close for the seventh week in a row and has so far fallen around 3%. It was close to entering bear market territory in Thursday’s choppy trade, market shorthand for a 20% drop from the last high.

On Friday, the Chinese central bank unexpectedly lower a key interest rate acting as a benchmark for mortgages, a move expected to support the country’s housing market. It kept other courses unchanged.

“We have a growth scare at the moment, coming from China and monetary policy biting into the US. So this morning, the mood was helped by China’s action,” said Arun Sai, a multi-asset strategist at Pictet Asset Management. “But we still need to build more evidence to convince the markets that a soft landing is possible.”

Government bonds have largely risen this week, as they typically do well in times of economic stress. The yield on the leading 10-year government bond rose to 2.871% on Friday from 2.854% on Thursday, reversing the trend as market sentiment improved

Shares of

Ross stores

dipped 26% in pre-market trading following retailer notices a decline in sales and said it expects another decline this quarter. Cyber ​​Security Company

Palo Alto Networks

increased by 11% after the reported quarterly revenue that beat analysts’ expectations.

Foot Locker

rose 5% after its CFO said it expects the company’s full-year earnings will be at the upper end of guidance.

“The earnings season has been good, there are a little more companies than usual beating expectations. The question is from the next quarter onwards, where we will have the full effect of the jump in oil prices and the war in Ukraine, “said Kiran Ganesh, a multiasset strategist at

UBS.

“That’s going to be the key, this is a bit of a preview.”

A trader worked on the floor of the New York Stock Exchange on Thursday.


Photo:

Seth Wenig / Associated Press

Abroad, Stoxx Europe 600 added 1.6%. Asian stocks also rose, with Shanghai Composite up 1.6% and Hong Kong’s Hang Seng up 3%.

Swiss luxury department store

Cie. Richemont financier

fell 9% after missing analysts’ estimates of operating profit, quotes suspension of activity in Russia.

Oil prices rose with Brent crude rising 0.4% to trade at $ 112.55 a barrel. barrel.

Write to Anna Hirtenstein at [email protected]

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