US stock futures rallied Friday, signaling that a portion of the market could regain losses after a spike in volatility in tech stocks caused the S&P 500 to plunge the worst in nearly three months.
Futures, pegged to the S&P 500, were up 0.3%, a sign that the broad market scale may rebound slightly at the open. The benchmark index fell 3.5% on Thursday, the biggest drop since June 11. This leaves the S&P 500 on track for its first weekly decline in six weeks.
Nasdaq Composite futures fell 0.5%, suggesting further pressure on the tech index after falling 5% on Thursday. The one-point decline in one day was the largest in nearly six months, and was driven by a decline in activity by many companies, which has pushed US stocks higher in recent months.
market valuation on Thursday after the stock fell 8%. This is the maximum that any American company has lost in one day. Despite the debacle, Apple shares are up 65% this year.
According to Sami Chaar, chief economist at Lombard Odier, investors are assessing an incomplete economic recovery and are revising estimates that have been decoupled from corporate fundamentals.
“There has been a lot of trade in new technologies in the past few weeks that weren’t based on a lot of materials,” said Mr. Chaar. “We have seen the worst of [economic] shock. But I would add to that that we’ve seen the best of recovery. “
The Cboe Volatility Index, an indicator of expected fluctuations in the S&P 500 Index, fell 1.2 points. On Thursday, the so-called Vix jumped seven points in its biggest one-day gain since June.
Attention is likely to focus on the monthly US labor market report, due out at 8:30 am ET, to provide evidence of the pace of economic recovery. Hiring likely fell in August from a faster pace earlier this summer, a sign that the economy is gearing up for a slow recovery from the shock of the coronavirus pandemic.
Economists expect employers to add about 1.3 million jobs in August, a significant monthly increase in wages, but the lowest in four months. The reopening of the state in the state helped boost employment by 7.5 million jobs in May and June before hiring growth slowed in July.
“This is still a partial and incomplete recovery,” said Agnes Belais, chief European strategist at the Barings Investment Institute. She monitors the rise in the so-called participation rate, which would indicate that Americans who have stopped looking for work are returning to the labor market.
The 10-year Treasury yield rose to 0.654% from 0.621% on Thursday ahead of the release of the employment report. The yield rises as bond prices fall. The WSJ Dollar Index, which tracks the US currency against a basket of other currencies, remained stable.
Brent crude oil prices rose 0.7% to $ 44.38 per barrel. This still means that the global oil benchmark will lose 3.5% this week. This will be his biggest weekly decline since mid-June. Fast restoration of fuel consumption The US is dwindling, creating new challenges for the oil market, economy and energy.
US stock futures pointed to a quieter session on Friday.
Photo:
Wang Ying / Zuma Press
International markets were mixed. The Stoxx Europe 600 Index rose 0.6%, driven primarily by banking and leisure stocks.
In Asia, Japan’s Nikkei 225 fell 1.1%, South Korea’s Kospi Composite shed 1.2%, and China’s Shanghai Composite fell 0.9%. Australia’s S & P / ASX 200 fell nearly 3.1%, its worst session since early May.
Eli Lee, head of investment strategy at Bank of Singapore, said the stock cut is similar to the previous cut in June. He sees no opportunity for deep correction.
“In the long term, low interest rates and a gradual recovery in the global economy will contribute to asset risks,” said Mr. Li.
