Stock futures rose slightly in overnight trading on Monday after a losing day as investors prepared to rebalance their portfolios with the fast approaching end of the quarter.
Dow Jones Industrial Average futures scored 36 points. S&P 500 futures rose 0.2% and Nasdaq 100 futures rose 0.3%.
The action at night was followed by modest losses on Wall Street as the return rally stopped. The Dow with blue chips fell about 60 points, while the broader benchmark, the S&P 500, fell 0.3 percent and the tech Nasdaq Composite lost 0.7 percent. The main averages rose last week, publishing its first positive week since May.
“The market bulls, on which the carpet has been repeatedly removed this year, may understandably be suspected of the rally, as many of the ups in 2022 quickly receded to new lows, and this time it may not be any different,” said Chris. Larkin, Managing Director of Trade at E-Trade.
Investors will monitor more data on Tuesday, including consumer confidence in June and house prices in April to assess the health of the economy. Fears of a recession have risen recently as the Federal Reserve tries to fight rising inflation with aggressively raising interest rates.
Nike shares rose after market trading as the sportswear company exceeded Wall Street’s revenue and sales expectations for the fiscal fourth quarter despite Covid’s blockade in China and a tougher climate for US consumers.
Several major banks have increased their dividends in response to the successful cleanup of this year’s Federal Reserve stress tests, including Bank of America, Morgan Stanley and Goldman Sachs. However, JPMorgan and Citigroup said increasingly stringent capital requirements were forcing them to keep their dividends unchanged.
Despite last week’s rebound, the S&P 500 fell nearly 14% in the second quarter, on track to post its worst quarter in the first quarter of 2020, in the depths of the pandemic.
“The rebound from the low levels of the bear market is a welcome change, although the slowdown in economic growth and lack of capitulation among investors are causing many to be skeptical about the sustainability of the recovery,” said Mark Hackett, head of investment research at Nationwide.
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