A trader works on the ground on the New York Stock Exchange (NYSE) in Manhattan, New York, USA, on August 20, 2021.
Andrew Kelly | Reuters
Stock futures remained flat during trading on Sunday night after a volatile week on Wall Street, as investors note a key event in which the Federal Reserve could hint at reduced stimulus prospects.
Futures tied to the Dow Jones industrial average fell 20 points. The future S&P 500 and Nasdaq 100 changed little.
The main averages came out of the losing week, as investors grew worried that the Fed’s possible action to withdraw the monetary stimulus could slow the economic recovery that is already challenged by the spread of the Covid-19 delta variant. .
The blue Dow bill fell 1.1% last week, while the S&P 500 fell nearly 0.6%, breaking a two-week winning streak. The Nasdaq, which has been very tech-savvy, fell 0.7% during the week.
“We suspect that investor conviction is challenged by the potential for future changes in monetary policy, the changing rotation of growth and value, and the growing trajectory of new coronavirus cases,” said Craig Johnson, technical market strategist by Piper Sandler, in a note.
Traders are eagerly awaiting the Jackson Hole symposium to get clues about the Fed’s timeline for recovering its $ 120 billion a month bond purchase program. The event takes place practically Thursday and Friday.
For the month of August, the main benchmarks are about to make modest gains. The S&P 500 has risen 1.1% so far, while the Dow has gained 0.5% and the Nasdaq has risen 0.3%.
“August is a historically volatile month for markets and this year is no different, with investors currently scaling multiple walls of concerns,” said Rod von Lipsey, CEO of UBS Private Wealth Management. “Changes in Covid-19 cases and a downward spiral in Afghanistan are creating a crisis of confidence, at a time when many investors are on holiday.”
Bitcoin traded up $ 49,821 over the weekend as the world’s largest cryptocurrency continues to rebound after months of weakness.