Stock futures rise slightly after Wall Street’s worst week since February

Dealer on the floor of the NYSE.

Source: NYSE

Stock futures rose in overnight trading on Sunday as the market appeared to continue to recover from last week’s inflation-driven sell-off.

The futures on the Dow Jones Industrial Average rose 40 points. S&P 500 futures and Nasdaq 100 futures were both 0.2% higher.

Bitcoin price fell more than 7% to around $ 44,000 after Tesla CEO Elon Musk hinted in a Twitter exchange on Sunday that the electric vehicle maker may have dumped its Bitcoin holdings. Last week, for environmental reasons, Tesla decided to stop Bitcoin for car purchases.

Wall Street has had one of the wildest weeks of 2021, with the S&P 500 down 4% midweek on heightened inflation fears. The broad equity benchmark ended the week after a consecutive rally with a loss of 1.4%. The tech-heavy Nasdaq Composite, which was particularly hard hit by higher price pressures, fell 2.3% last week. The blue chip Dow fell 1.1% over the period. All three benchmarks had their worst week since February 26th.

“Not only [last] The week’s events are a warning sign of how uncomfortable inflationary pressures can get, but also a warning sign of how overbought the stock markets have become, “JPMorgan chief executive officer Nikolaos Panigirtzoglou said in a note.

Last week’s data showed that the consumer price index was up 4.2% yoy in April. This was the fastest rate since 2008, adding to fears that the Federal Reserve may be forced to taper its loose monetary policy if price pressures persist.

The Fed’s minutes of its last meeting, released on Wednesday, may provide some clues as to how policymakers are thinking about inflation.

Elsewhere, the first quarter earnings season ends with more than 90% of the S&P 500 companies reporting their results. So far, 86% of the S&P 500 companies have reported a positive EPS surprise. That would be the highest percentage of positive earnings surprises since 2008 when FactSet started tracking this metric.

Walmart, Home Depot and Macy’s will all be making profits on Tuesday.

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