US stock futures rise after recession fears spark bruising losses

Investing.com– U.S. stock index futures rose in evening deals on Monday, recovering mildly after Wall Street logged a series of bruising losses amid growing concerns over an economic slowdown.

An element of bargain buying also aided stocks, particularly those in the technology sector, after a sharp drop in valuations over the past few weeks.

rose 0.9% to 5,263.75 points, while rose 1.2% to 18,224.25 points by 19:07 ET (23:07 GMT). rose 0.5% to 39,053.0 points. 

Recession fears spark deep losses, S&P and Nasdaq at 3-mth lows 

Concerns over a drastic slowdown in economic growth, following a string of underwhelming purchasing managers index and labor market readings, saw Wall Street tumble from near record highs over the past two weeks. 

Losses came to a head on Monday, with the sliding 3% to 5,186.33 points, while the tumbled 3.4% to 16,208.38 points, with both indexes at three-month lows. The fell 2.6%% to a two-month low of 38,703.27 points. 

Weak economic data fueled fears that the Federal Reserve had kept interest rates high for too long, and that any cuts by the central bank now would be insufficient in helping the economy gain a soft landing.

Still, markets did increase their expectations for a 50 basis point cut in September, and were pricing in at least 100 bps in rate cuts this year, showed.

Tech steadies from bruising losses 

Losses on Wall Street were driven chiefly by extended selling in technology stocks, amid a mix of factors. 

Apple Inc (NASDAQ:) was among the worst performers on Monday on news that Berkshire Hathaway Inc (NYSE:) had halved its stake in the iPhone maker. The stock rose slightly in aftermarket trade.

NVIDIA Corporation (NASDAQ:) rose 2.4% after tumbling over 6% on a report that the firm’s latest artificial intelligence chip will be delayed due to a design flaw.

Alphabet Inc (NASDAQ:) rose slightly after tumbling 4.5%, as a court ruled the firm had violated antitrust law with its search engine. 

Q2 earnings set to continue 

Some major earnings are still due in the coming days. Industrial bellwether Caterpillar Inc (NYSE:) and ride sharing giant Uber Technologies Inc (NYSE:) are set to report on Tuesday.

Super Micro Computer Inc (NASDAQ:) is also due on Tuesday, and is set to offer more cues on demand from the artificial intelligence industry. 

Media giants Walt Disney Company (NYSE:) and Warner Bros Discovery Inc (NASDAQ:) are due on Wednesday.