Stock Groups

Stock futures rise slightly following S&P 500’s best day in more than two weeks

[ad_1]

A trader works at the New York Stock Exchange (NYSE), August 19, 2021.

Reuters Stock futures edged up in overnight trading on Wednesday following a rebound on Wall Street as the market tried to avert the seasonally weak September.| Reuters

Stock futures edged up in overnight trading on Wednesday following a rebound on Wall Street as the market tried to avert the seasonally weak September.

The Dow Jones Industrial Average futures rose by 30 points. S&P 500 futures and Nasdaq 100 futures both gained 0.1%.

Moderna rose slightly in extended trading after the company released more data on breakthrough Covid cases that supports the push for the wide use of vaccine booster shots.

The S&P 500 gained 0.9% Wednesday amid a 3.8% jump in the energy sector, posting its biggest daily increase since Aug. 27. Blue-chip Dow gained more than 200 points while tech-oriented Nasdaq Composite gained 0.8%.

After seven straight months of gains for the S&P 500 and a near 20% rally to records this year, many on Wall Street expect bumpier trading and lower returns for the rest of the year. Market history isn’t in market’s favor, as September tends be a very negative month. The S&P 500 has fallen 0.56% during the month on average since 1945, according to data from CFRA.

According to data from CFRA, the Wall of Worry is getting more difficult to climb with increasing depth and breadth in concerns, and a tired market,” stated Mark Hackett of Nationwide, chief of investment research.

So far this month, the 30-stock Dow is down 1.6%, while the S&P 500 has declined 0.9%, on track for its worst monthly performance since January. The Nasdaq is down 0.6% for the month.

Hackett explained that “the market’s stress factors have not changed materially, including the Delta version, earnings headwinds from supply chains and labor difficulties, fiscal and monetary tailwind shifting into headwinds as well as bubbling concerns about China.”

On Thursday, investors will be monitoring the most recent jobless claims data. Dow Jones economists expect that 320,000 Americans will apply for unemployment insurance this week, slightly higher than 310,000 the week before.

Traders have also been anticipating volatility spikes on Friday. The so-called quadruple witching will occur at the end of the week as stock and index futures and options are set to expire on the same day.

[ad_2]