The stock market gained on Monday as investors overcame worries about historically high prices and a gloomy outlook for global economic growth, continuing a week-long uptrend.
There were 220 points, or 0.7 percent more, in Dow Jones Industrial Average futures after the index rose 658 points to finish at 31,288 on Friday. The Nasdaq COMP +1.79 percent is expected to advance 1.3 percent, while the S&P 500SPX +1.92 percent futures indicate a start of 0.9 percent in the green.
In Europe, the Stoxx 600 stock index rose by 1.1 percent, while the Hong Kong-based Hang Seng Index rose by 2.4 percent internationally.
What’s Behind Value’s Recent Success?
Even though the Dow and S&P 500 had their best days in over a month on Friday, the stock market could not wrap up the week positively.
According to CMC Markets analyst Michael Hewson, “Despite a decent rebound on Friday, European and US markets both found themselves finishing the week lower, as sentiment ebbed and flowed on a day-to-day basis.”
Rising inflation data stoked concerns that the Federal Reserve might be forced to tighten monetary policy even further, perhaps triggering a recession, which weighed heavily on the stock market last week.
A significant hike in interest rates is predicted for next week, and investors will be watching earnings reports from U.S. corporations as a possible trigger for their emotions until then. Along with International Business Machines, Wall Street titans Goldman Sachs GS +4.36% and Bank of America BAC +7.04% (GS) report results on Monday (IBM).
“Second-quarter U.S. profits and all things European will be at the center of market focus this week, with the highlight being the [European Central Bank’s] expected first-rate rise since 2011 on Thursday,” said Jim Reid, a Deutsche Bank analyst.