Traders work on the floor of the New York Stock Exchange (NYSE) in New York, Monday, August 23, 2021.
Michael Nagley | Bloomberg | Getty Images
The stock futures were flat in Thursday night’s trading after a two-day gain after moving the main average to positive territory for the week.
The Dow Jones Industrial Average futures rose 20 points. S&P 500 futures and Nasdaq 100 futures have changed slightly.
The market rallied for two days after the Federal Reserve signaled it would not reject its ultra-simple monetary policy. Investors also bet that the crisis of China’s real estate giant Evergrand will not have a major impact on global markets.
Blue-Chip Dow has advanced 500 points for its best daily performance since Thursday, July 20th. The S&P 500 rose 1.2%, while the technology-heavy Nasdaq Composite rose 1%.
The main average has erased steep losses earlier this week and is in the process of posting a winning week. The Dow is now up 0.5% on the week, breaking the three-week losing streak. The S&P 500 gained 0.4% this week and the Nasdaq rose nearly 0.1%.
Some expect Evergrand to default on bond payments because it is still unclear whether the developer was able to pay 83 83 million in interest on the US dollar-denominated bond on Thursday. Bloomberg News reports that government regulators have instructed Evergrand to avoid short-term dollar bond defaults. Bondholders can also look at the 300-day grace period. Whatever the outcome, investors are hoping it will have an impact on Wall Street.
“If Evergrand fails, exposure outside China seems to be limited and since the government will do whatever it takes to do so,” said Edward Moya, a senior market analyst at Wonder. “If China succeeds, the global risk appetite will not be able to cope with so many injuries.”
On Wednesday, the Fed said its monthly bond-buying program could be “guaranteed soon,” but did not give a deadline for when it could begin to control its purchases.
“As we move farther and closer to zero from the end of QE, the tide is starting to turn,” said Anu Gagar, a global investment strategist at Commonwealth Financial Network. “So far, the market has welcomed the bad news as good news, but a fresh change in response to signs that the economy is able to stand on its own without a monetary crunch.”
Shares of Nike fell 2.5% in extended trading on Thursday after sneaker giant reported quarterly revenue that missed analysts ’expectations due to declining demand in North America.