Stock futures rose Monday night as traders navigate one of the busiest weeks of corporate earnings season.
Futures tied to the Dow Jones Industrial Average rose 98 points, or 0.3%, while those for the S&P 500 rose 0.4%. Nasdaq 100 futures gained 0.5%.
The move in futures comes after a mildly bearish day for stocks. The Dow and Nasdaq Composite each fell 0.1%, while the S&P 500 fell 0.02%.
Major indices are down as the first quarter earnings season heats up. Before Tuesday’s bell, Johnson & Johnson and insurance giant Travelers will announce their latest results. Other notable reports include Hasbro, Lockheed Martin, and several mid-tier banks like Citizens Financial.
With inflation and the Fed’s next move a key debate in markets, investors are paying attention to how supply chains and consumer demand are developing at large companies. Expectations for rate hikes by the Fed have risen sharply in recent months, although the central bank has said it will be data dependent when deciding how to hike rates later in the year.
“Can the Fed actually raise interest rates solve some of the bottlenecks we have in labor, semiconductors and wheat? Probably not. So maybe they’ll end up acting a little less aggressively than some people think,” said Adam Parker of Trivariate Research of Closing Bell: Overtime.
Concerns about the Fed’s next move have also fueled high volatility in the bond market, which appears to have weighed on equities in recent weeks. On Monday, the 10-year government bond yield hit its highest level in three years. St. Louis Fed President James Bullard told CNBC’s Steve Liesman Monday that “quite a lot has been priced in” on the Fed’s actions.
Elsewhere on Tuesday, investors will get an updated look at the housing market with housing starts and building permits in March.