U.S. stock futures rose on Monday morning following a significant rebound last week from this yr’s steep declines. Despite the bounce, Wall Street is preparing to wrap up the worst first half for stocks in many years.
Dow Jones Industrial Average futures rose 0.3%, or 81 points. S&P 500 futures gained 0.4%, and Nasdaq 100 futures advanced 0.5%.
Those moves followed a significant comeback week that saw the Dow industrials jump greater than 800 points, or 2.7%. The S&P 500 popped 3.1%, and the Nasdaq Composite surged 3.3%.
Those gains helped the foremost averages post their first positive week since May. The Dow climbed 5.4% last week. The S&P 500 increased 6.5%, and the Nasdaq Composite gained 7.5%.
The S&P 500 is up 7.5% since hitting a bear-market low in mid-June, although the benchmark continues to be off 19% from its high and 18% because the yr began.
Market participants continued to evaluate whether stocks have found a bottom, or are as a substitute just briefly rebounding from oversold conditions. Stocks could proceed to get a lift within the near term this week, as investors rebalance their holdings for the quarter-end.
“In a way, the equity market is prone to be… in a go-nowhere-fast mode for the foreseeable future,” Terry Sandven, chief equity strategist at U.S. Bank Wealth Management, told CNBC on Friday.
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“Inflation is running hot, sentiment is subdued, liquidity is evaporating, and earnings are each a brilliant spot and a wildcard. So, in aggregate, to us, that suggests that we’re probably in a sideways trending mode for some time,” Sandven added.
On the economic front, Wall Street is expecting the newest reading of durable goods orders to come back out Monday before the bell.
Traders are also expecting the pending home sales report, which is predicted at 10 a.m. ET on Monday.