Stock futures bounce as investors assess start of new quarter, bond market recession indicator
Stock futures rose early Thursday as investors assessed a new trading quarter and an indicator of a troubled bond market downturn.
Investors are also awaiting the official jobs report for March, which the Labor Department will release at 8:30 a.m. ET on Friday.
The Dow Jones Industrial Average rose 90 points, or 0.3%. S&P 500 futures were up 0.2 percent and Nasdaq 100 futures were up 0.3 percent to start the first trading session of the second quarter.
Dow Jones Industrial Average Drops Next Thursday the end of the first negative quarter shares for two years, with losses accelerating in the last hour of trading. The Dow fell 550.46 points, or 1.56%, to 34,678.35. The S&P 500 fell 1.57% to 4,530.41 and the Nasdaq Composite dropped 1.54% to 14,220.52.
All three major averages posted their worst quarters since March 2020. The Dow and S&P 500 fell 4.6% and 4.9%, respectively, during the period, and the Nasdaq shed more than 9%. However, stocks rallied towards the end of the quarter in March after plummeting as rising interest rates and inflation marked the start of the year.
Stocks have now shaken off recession signals from the bond market triggered by Thursday’s closing bell. Yields on 2-year and 10-year Treasuries reverse for the first time as of 2019. For some investors, it’s a signal that the economy is heading for a possible recession, although the inverted yield curve doesn’t predict exactly when that might be. that happens and history suggests it could be more than a year or so away.
Shannon Saccocia, chief investment officer at Boston Private Wealth, told CNBC: “I think people need to acknowledge the fact that we are obviously going to move into a slower economic environment.
“You need to get income growth from somewhere, and if it’s not a secular breeze, like fiscal spending and monetary policy easing, then you have to look for growth elsewhere.” elsewhere. I think we’ll see some real nuance in trading within the next three months or so as people seek that growth in this more challenging economic backdrop.”
ONE Friday’s strong jobs report could give the Fed more confidence to maintain its aggressive interest rate hike plan this year to curb inflation without fear of the economy slowing down too much. Economists predict that about 490,000 jobs were added in March, according to consensus estimates from Dow Jones, after adding 678,000 jobs in February. The unemployment rate is expected to fall to 3.7% from 3.8%, according to Dow Jones.
GameStop more than 10% increase in extended trading after the video game retailer and meme stock announced its intention to split.
Energy prices fell on Thursday after the White House said it would issue a unprecedented amount of oil from the Strategic Petroleum Reserve. Up to 1 million barrels of oil per day will be released over the next six months.
Other key metrics to watch include the ISM manufacturing index and the construction spending report, both of which will be released at 10 a.m. ET on Friday.
