Global stocks and U.S. futures rose Monday as investors expected a busy week of corporate profits, economic data and central bank decisions.
S&P 500 futures added 0.1% after the benchmark indicator recorded the biggest loss in a week since late October. U.S. stock and bond markets are closed Monday for Martin Luther King Day.
Stocks have fluctuated in recent days after a strong start to the year fueled by hopes of a vaccine-induced economic recovery that could be helped by a new fiscal stimulus under the incoming administration. While many investors expect the rally to continue, they say stocks will remain bumpy in the coming weeks amid signs that high rates of coronavirus cases are hurting economic activity.
“Markets are in a way leading the way in the recovery and normalization of economic activity,” said Agnès Belaisch, chief European strategist at the Barings Investment Institute. Shares are forced to stop intermittently given the disconnect between the market and how Covid-19 restrictions are slowing the economic recovery, he said.
This week, investors will analyze the quarterly earnings of dozens of large corporations, including JB Hunt Transport Services, UnitedHealth Group and Intel, for guidance on profit and revenue prospects throughout 2021. Central Bank and Central Bank monetary policy decisions European Bank Japan are also ready, as well as polls that will give an indication of business activity earlier this year and the inauguration of President-elect Joe Biden.