Steven Birdsall, Chief Revenue Officer Anaplan Inc. (left), and Frank Calderoni, President and CEO of Anaplan Inc. (center) chatting with a trader during the company’s initial public offering on the floor of the New York Stock Exchange in New York. York, October 12, 2018
Michael Nagle | Bloomberg | Getty Images
U.S. stock futures remained solid in overnight trading on Sunday after the best week for the S&P 500 since 2020.
Dow futures rose 15 points. S&P 500 futures rose 0.04%, while Nasdaq 100 futures were flat.
Last week, the three major indices posted their best performance since November 2020, driven mostly by growth stocks. The S&P 500 is up 6.1% Monday through Friday. The Dow Jones Industrial Average ended the week up 5.5%, while the technology-focused Nasdaq Composite rose 8.1%.
The S&P 500 recouped nearly half of its correction losses last week as investors received much-awaited clarity from the Federal Reserve, which raised interest rates for the first time since 2018. The central bank has signaled that it expects rate hikes at the remaining six meetings this year. .
“I think the Fed has set the stage for investors to refocus on earnings,” said Julian Emanuel, head of equities, derivatives and quantitative strategy at Evercore ISI. “The bottom line… profit estimates have risen since the beginning of the year.”
Market participants are also following the war between Russia and Ukraine. Ukrainian President Volodymyr Zelensky has warned that if peace talks with Russian leader Vladimir Putin fail, it would mean the start of a third world war.
“If these attempts fail, it will mean that this is a third world war,” Zelensky said in an interview with CNN correspondent Farid Zakaria that aired Sunday morning.
Ukrainian and Russian officials met from time to time for peace talks that did not result in key concessions.
Investors are also evaluating the surge in Covid cases in Europe linked to the new variant.
The economic calendar is relatively light this week, but several companies have reported earnings. Nike and Tencent Music report quarterly results on Monday.
— Patti Domm of CNBC contributed to this report.