Futures rise after two-day sell-off on Wall Street
2022.05.20 15:01
A trader works on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., May 19, 2022. REUTERS/Andrew Kelly
(Reuters) – U.S. stock index futures gained on Friday, with banks and megacap growth shares rising on the last day of a week that saw market volatility on concerns about the impact of higher inflation and subsequent rate hikes to tame it.
Google (NASDAQ:GOOGL) owner-Alphabet Inc, Apple Inc (NASDAQ:AAPL), Meta Platforms, Microsoft Corp (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN) and Tesla (NASDAQ:TSLA) Inc gained between 1.1% and 1.8% in premarket trading.
Citigroup (NYSE:C) added 1.2% to lead gains among the big banks.
All the major indexes ended lower on Thursday, posting their second consecutive session of losses, dragged down by shares of Apple and network gear maker Cisco Systems (NASDAQ:CSCO).
Disappointing forecasts from retailers including Walmart (NYSE:WMT) Inc and Target (NYSE:TGT) Inc have rattled market sentiment this week, adding to evidence that rising prices have started hurting the purchasing power of U.S. consumers.
The S&P 500 and the Nasdaq are tracking their seventh straight week of losses, their longest losing streak since 2001, while the Dow is set for its eight consecutive weekly decline, its longest since 1932.
The indexes are down between 14.0% and 27.2% so far this year as investors adjust to prolonged supply chain snarls, COVID-19 lockdowns in China, geopolitical uncertainty stemming from the Ukraine conflict and the U.S. Federal Reserve raising rates.
Traders are pricing in 50 basis point interest rate hikes by the U.S. central bank in June and July.
The benchmark index is down about 18.7% from its record close on Jan. 3. A close of 20% or more below that level will confirm the S&P 500 has been in a bear market since hitting that peak.
At 7:07 a.m. ET, Dow e-minis were up 240 points, or 0.77%, S&P 500 e-minis were up 37.5 points, or 0.96%, and Nasdaq 100 e-minis were up 155.5 points, or 1.31%.
Asian and European shares rebounded on Friday after China cut a key lending benchmark to support its economy.
Among other stocks, Ross Stores (NASDAQ:ROST) plunged 26.4% after the discount apparel retailer cut its 2022 forecasts for sales and profit.
