Stock futures rose inches after Dow, S&P exhausted 5-day losing streak

U.S. stock index futures were modestly higher during trading overnight on Monday, after the S&P 500 ended in the green, achieving a five-day losing streak.

Futures contracts linked to the Dow Jones industrial average rose 39 points. The S&P 500 futures gained 0.12%, while the Nasdaq 100 futures rose 0.08%.

Both Dow and S&P advanced during regular trading for the first time in six sessions, as investors bet that some recent sales seemed exaggerated. The Dow gained about 260 points, or 0.76%, after rising by almost 1% at one point in the session. The S&P advanced 0.23%.

The Nasdaq Composite, however, slowed the trend and fell 0.07% for its fourth consecutive negative session. The heavy technology index has the longest daily loss streak since mid-July.

Eight of the 11 sectors ended up in the green, led by energy stocks, which jumped on the back of the rising oil price.

Stocks linked to the economic reopening, including airlines and cruise line operators, also gained after the 7-day daily average of the U.S. Covid case fell to about 144,300, below the approximately 167,600 daily cases of beginning of the month.

“In the short term, we expect higher stock market volatility, although long-term investors should use setbacks to add to stock market exposure,” said Richard Saperstein, chief investment officer of Treasury Partners. “The next six weeks tend to be seasonally weak for equities, which is an additional concern for a stock market that is already facing high valuations and a lack of short-term rising catalysts,” he said. add.

On Tuesday, when the reading of the August consumer price index is published, supervised inflation data will be published. According to Dow Jones estimates, economists expect consumer prices to rise 0.4% month-on-month in August and 5.4% year-on-year. Impression comes after production prices rose 8.3% year-on-year in August, the largest annual increase since records were kept in November 2010.

The National Federation of Independent Businesses will also publish its latest survey on Tuesday, which will provide investors with a boost on the smooth running of small businesses.

In Washington, House Democrats proposed further tax hikes to pay for the $ 3.5 trillion spending package. A summary of the Forms and Means Committee showed that the plan provides for higher tax rates for companies and 26.5% and 39.6%, respectively.

All major averages have fallen at least 1% in September and RBC does not see the S&P 500 rising by the end of the year. The firm raised its year-end target for the benchmark to 4,500 on Monday, up from a previous target of 4,325. The new target is less than 1% above the place where the index closed on Monday. The company also introduced a target of 4,900 by the end of 2022.

“We continue to think that the S&P 500 will experience a period of significant volatility / decline before the end of the year, a call we have been making in recent months due to the high sentiment and position of the equity market,” he said. write the signature on a note to customers.

“While we take the reasons for a setback seriously, we also see the risks of economic recession as low, reducing the likelihood of a total growth scare and we intend to treat it as a buying opportunity,” RBC added. .

The Federal Reserve begins a two-day political meeting on September 21st.