US stock futures rise after China’s interest rate cut as Dow is at risk of the worst weekly losing streak in history
US stock futures rise after China’s interest rate cut as Dow is at risk of the worst weekly losing streak in history

US stock futures rise after China’s interest rate cut as Dow is at risk of the worst weekly losing streak in history

US stock futures pointed to a strong jump for Wall Street on Friday, as sentiment lifted from a cut in one of China’s key lending rates. But investors are still facing another weekly loss.

How is stock index futures trading?
  • S&P 500 futures
    ES00,
    +1.24%

    climbed 41.5 points, or 1%, to 3,939.25

  • Dow Jones Industrial Average futures
    YM00,
    +1.03%

    jumped 294 points, or 0.9%, to 31,495

  • Nasdaq 100 futures
    NQ00,
    +1.66%

    climbed 199 points, or 1.6%, to 12,075

On Thursday, Dow Industrials and S&P 500 booked their lowest closures since March 2021, according to Dow Jones Market Data. Dow
DJIA,
-0.75%

decreased 236.94 points, or 0.8%, and ended at 31,253.13, after an increase of 300 points at one point. S&P 500
SPX,
-0.58%

fell 0.6% to 3,900.79, and the Nasdaq Composite
COMP,
-0.26%

decreased 0.3% to 11,388.50.

Wednesday’s dramatic sale marked the worst day for the Dow and S&P 500 since June 2020.

What drives the markets?

Wall Street futures were based on a strong Asian session where Hong Kong Hang Seng
HSI,
+2.96%

rose 3.2% and the China CSI 300 index
000300,
+1.95%

rose 1.9 pct.

People’s Bank of China Friday lower interest rates on five-year loans, which aims to support weak home sales by cutting home mortgage costs. The country has been battling COVID outbreaks, with shutdowns in industrial hubs like Shanghai blaming weak factory and consumer activity data in April.

S&P took a step closer bear market territory Thursday, as the war between Russia and Ukraine, a downturn in China, high inflation and rising interest rates have sparked concern over corporate profits and economic growth.

Read: Selloff puts the S&P 500 right outside the bear market’s doorstep. If the story is a guide, there is more pain ahead.

A decline of 3% or more each, large indices are likely to face another week of losses. Dow Industrials is set for its eighth straight loss, marking its longest streak in history, according to FactSet.

The S&P 500 and Nasdaq are ready for their worst loss series since June 2011 and November 2012, respectively. Losses have come amid concerns over whether rising inflation can be brought under control by the Federal Reserve without derailing the economy.

Major retailers this week, such as Walmart
WMT,
-2.74%

and Target
TGT,
-5.06%

reported a disappointing profitagainst the background of rising spending and inflation.

Read: The Swiss running shoe company On Holding runs with premium prices despite inflation

The US data calendar is empty for Friday, but next week brings another round of inflation data, prices on private consumption excluding food and energy.

Leave a Reply

Your email address will not be published.