A trader works on the floor of the New York Stock Exchange (NYSE) in the United States on Monday, August 2, 2021.
Michael Nagley | Bloomberg | Getty Images
Stock futures were stable in overnight trading on Sunday as investors prepared for the last week of September.
Futures rose 20 points on the Dow Jones Industrial Average. Both the S&P 500 futures and the Nasdaq 100 futures have changed slightly.
Wall Street is coming up with a roller-coaster week amid signals from the Federal Reserve about the return of financial stimulus from the crisis of Chinese real estate giant Evergrand and Beijing’s crackdown on cryptocurrencies. Nevertheless, the main average was able to erase the steep loss at the beginning of the week and make small gains.
The Blue-Chip Dow finished 0.6% higher in the week, breaking the three-week losing streak. The S&P 500 rose 0.5% last week, while the tech-heavy Nasdaq Composite rose 0.02% last week.
“Equity markets continue to reflect the war between bulls and bears,” Mark Hackett, head of investment research at Nationwide, said in a note. “The market recovery indicates that the buy-dip mentality remains.”
So far, September has maintained its reputation for volatility and weakness as all of the major averages have registered general losses. The S&P 500 is down 1.5% for posting its first negative month since January. The broader equity benchmark closed about 2% of its record high since September 2nd.
Raymond James CIO Larry Adam said, “We continue to be cautious in the near future, especially as we enter the weakest part of the season tug of war (late September-mid-October).” “However, due to the continued strong economic growth, our bias is to keep existing equity exposure or add opportunism to weaknesses.”
Investors are watching progress in Washington as lawmakers seek to stem the government shutdown, default on U.S. debt and the possible collapse of President Joe Biden’s massive economic program.
House Speaker Nancy Pelosi said Sunday she expects a $ 1 trillion bilateral infrastructure bill to be passed this week, but voting on the law could be postponed from its original Monday deadline.
To avoid a shutdown, Congress must pass a new budget by the end of September, and lawmakers must find a way to raise or suspend the debt limit in October, before the United States defaults on its debt for the first time.
Elsewhere, Bitcoin fell nearly 2% to $ 43,454 after falling 5% on Friday. The sale came to a halt after China’s central bank declared all cryptocurrency-related activities illegal.