Wall Street Futures Gain After Stocks Posted a Losing Week

13 Sep 2021 · 3rd Party Analysis

Wall Street Futures


In Summary

  • Stock futures gain considerably after a disappointing performance last week
  • European markets opened moderately higher, Stoxx 600 gained about 0.4%

Futures Point Higher Early Monday

Futures on the main indexes pointed to gains at the open on Monday. In the early morning hours ahead of the regular session today, futures contracts tied to the Dow Jones Industrial Average advanced by more than 180 points, or about 0.5%.

Futures on the other two major benchmarks, the S&P500 and the Nasdaq Composite, also moved higher as US traders and investors prepare to enter this week’s trading action.

All three future contracts were higher by 0.2% to 0.5% in overnight activity, following the most significant weekly loss since June.

Inflation fears, a reduction of monetary support, and the consistent rise in Covid-19 infections in the US decreased the risk appetite in the market last week. The broad-based S&P500 index fell 0.8% on Friday, bringing the weekly decline to a total of 1.7%.

The tech-heavy Nasdaq Composite slipped 0.9% on Friday, adding to a weekly loss of 1.6%. Earlier during the week, the index reached its all-time high.

Optimism was further dented by several economic reports which showed the continued growth over the last few months has waned.

European Stocks Renew Growth Trajectory

In Europe, the main stock averages pushed moderately higher on Monday, aiming to reverse last week’s losses across the board. All major indexes in the euro area opened for trading in the green with Stoxx Europe 600 gaining about 0.4%.

European stocks, similarly to their Wall Street peers, closed lower on Friday and for the week. The pan-European Stoxx 600 closed down 0.26% on the last trading day of the previous week and ended the week lower by more than 1%.

The broader market index for Europe has declined in four out of the last five trading sessions as persistent worries about the global economic slowdown have weighed on the sentiment.

US Dollar Rallies and Gold Stagnates

In the currency space, the US dollar extended its move higher against a weaker euro in the initial hours of today’s market session. The volatile exchange rate broke the 1.18 level and reached a session low of 1.1780.

Gold, on the other hand, has been depressed near the $1,790 area as market participants are shifting gears to enter the trading week.

Cryptocurrencies earlier today slipped in a broad move lower as the digital asset space lacked buying momentum. Over the weekend, crypto tokens traded largely unchanged. The price of Bitcoin is currently hovering above $44,000 per token.

On Monday, investor focus will be on the advance of the US dollar. Besides the euro, the greenback has progressed against the Japanese yen, the Swiss franc and the British sterling. Trading ideas and opportunities will be present also in the gold market as the yellow metal is approaching a two-week low.

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