Stock futures are steady in overnight trading after market ends wild week in the green
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Aug. 23, 2021.
Michael Nagle | Bloomberg | Getty Images
Stock futures were holding steady in overnight trading on Sunday as investors braced for the last week of a volatile September.
Dow Jones Industrial Average futures increased 20 points. S&P 500 futures and Nasdaq 100 futures were both little changed.
Wall Street has had a wild week, with a host of worries including the Chinese real estate giant Evergrande’s debt crisis and the Federal Reserve signaling a reduction in monetary stimulus. Also, Beijing’s clampdown on cryptocurrency trading is making Wall Street nervous. Major averages still managed to recover some of the steep losses suffered earlier in week, and made small gains.
Blue-chip Dow ended the week 0.6% better, ending a losing streak of three weeks. The S&P 500 rose 0.5% on the week, while the tech-heavy Nasdaq Composite edged up 0.02% last week.
Nationwide’s chief investment researcher Mark Hackett stated in a note that equity markets “continue to reflect a tug of war between bears and bulls.” The market recovery showed that there is still a buy-the dip mentality.
As major averages report modest losses, September has been living up to its reputation of volatility and weakness. The S&P 500 is off by 1.5%, on track to post its first negative month since January. This broad equity benchmark has dropped 2% from the record Sept. 2 high. The Dow dropped 1.6%, and the Nasdaq fell 1.4%.
“We continue to exercise caution in the near term, especially as we enter the seasonally weakest part of the year (late September — mid-October),” Larry Adam, CIO at Raymond James, said in a note. However, we continue to be cautious in the near term, especially given robust economic growth. We prefer to keep existing equity exposure and add opportunistically on weaknesses.
The progress of Washington is being monitored by investors as legislators attempt to stop a government shut down, a default in U.S. debt, and the collapse possible for President Joe Biden’s ambitious economic plan.
House Speaker Nancy Pelosi said Sunday Although she anticipates the $1 trillion multi-party infrastructure bill passing this week, it is possible that voting could be moved back to Monday.
Congress needs to approve a new budget before September 31st to avoid a government shutdown. In October, Congress will need to determine if the debt ceiling can be increased or suspended in order to stop the U.S. from defaulting on its obligations.
After dropping 5% Friday, bitcoin recovered about 2% and climbed to $43,454 on the other side. The sell-off came after China’s central bank declared all cryptocurrency-related activities illegal.