U.S. stock futures rose on Monday morning, ending a seven-week losing streak on firmer footing as investors shrugged off some recent volatility and digested fresh trade-related rhetoric from the Biden administration.
The S&P 500 contract was up more than 1% in early trade. The index closed flat on Friday, but was down 18.7% from a new closing high set on Jan. 5, not far from a bear market, which is once the index closes at least 20% from its most recent all-time closing high.
Dow futures rose more than 300 points, or 1.1%, and Nasdaq futures were also up more than 1% in premarket trading. The upside came after President Joe Biden said he was considering easing tariffs imposed on Chinese goods during the previous administration. Biden’s remarks, At a press conference with Japanese Prime Minister Fumio Kishidaappear in sequence U.S. Treasury Secretary Janet Yellen said last week She is encouraging the Biden administration to roll back tariffs that she says will “do more harm to consumers and businesses” in the U.S.
Tariffs may ease as the U.S. economy grapples with decades of high inflation, boosting at least temporarily risks that have been hit in recent weeks by higher prices, more aggressive monetary policy from the Federal Reserve and international concerns in Ukraine Assets and China. The S&P 500 also fell for the seventh straight week as of Friday, its longest losing streak since 2001. On Friday, the index fell 20.6% from a record high in January to trade in a bear market. market territory.
According to Ryan Detrick, chief market strategist at LPL Financial, there have been 12 official bear markets in the S&P 500 since World War II, 17 of which include periods of “near bear markets” or periods when the index has fallen more than 19%. Among them, the average decline was about 29.6%, with an average duration of 11.4 months.
However, Detrick added that when a bear market coincides with a recession, it tends to be worse, with an average decline of 34.8% lasting 15 months. A recession is often considered after two consecutive quarters of negative gross domestic product (GDP).
Traders will receive a second estimate of U.S. first-quarter GDP later this week, after last month’s first estimate was The annualized rate is 1.4%. However, recent economic data has shown some strong momentum, retail sales There’s some left Manufacturing data strong, while employment data started to soften.
“I do think the economy is doing better than the stock market is telling you right now,” said Rhys Williams, chief strategist at Spouting Rock Asset Management. Tell Yahoo Finance Live on Friday. “And my guess is that we’re going to be playing with stocks and bonds over the summer.”
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7:23 a.m. ET: Stock futures up more than 1%
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S&P 500 futures (ES=F): +47.5 points (+1.22%) to 3,947.00
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Dow futures (YM=F): +346.00 points (+1.11%) to 31,559.00
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Nasdaq Futures (NQ=F): +127.25 points (+1.07%) to 11,968.00
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thick(CL=F): +$1.08 (+0.98%) to $111.36
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gold (GC=F): +$16.90 (+0.92%) to $1,859.00/oz
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10-year Treasury note (^TNX): +4.6 basis points, yield 2.833%
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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter.
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