Stock futures point higher after bruising sell-off
US stock futures rose on Monday after a significant sell-off, with investors eagerly anticipating a busy week of events. The latest policy decision from the Federal Reserve and earnings announcements from Apple (AAPL) are in focus.
Futures on the S&P 500 (^GSPC) were up approximately 0.6% after officially entering correction territory on Friday. Dow Jones Industrial Average (^DJI) futures also rose by almost 0.6% after closing with a loss of over 350 points.
Meanwhile, contracts on the tech-heavy Nasdaq 100 (^NDX) increased by nearly 0.7% following a challenging week driven by mixed Big Tech earnings results.
Market attention is now on the Federal Reserve and Apple, the largest company on the S&P 500, to boost investor sentiment after a tough few months in the stock market. The US jobs report for October, scheduled for release on Friday, is also highly anticipated.
Expectations of policymakers maintaining their “higher for longer” stance and keeping interest rates steady in their Wednesday decision have risen due to a jump in the Fed’s preferred inflation metric.
Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
Apple’s quarterly results are set to be released on Thursday after the market close. Investors will be closely monitoring the impact of China’s restrictions on iPhone use.
At the same time, investors are analyzing the implications of McDonald’s earnings released on Monday, which provide insight into the resilience of the US consumer amidst high borrowing costs. The burger giant exceeded earnings estimates in the third quarter, driven by increased menu prices and sales growth.
In commodities, benchmark oil prices declined as Israel’s measured campaign in Gaza eased fears of escalating conflict in the Middle East. This development encouraged investors to re-enter the market. West Texas Intermediate futures (CL=F) dropped 1.8% to $84.01 a barrel, while Brent futures (BZ=F) fell 1.5% to around $87.86 a barrel.
