Stock futures in the U.S. managed to edge higher on Sunday despite a tumultuous week that saw the Dow Jones Industrial Average suffer its worst performance of the year. The market was grappling with a range of issues, including Iran’s missile and drone strike on Israel and increased volatility in the equity market.
Futures tied to the major indices showed modest gains, with the Dow Jones Industrial Average rising 90 points, or 0.2%, while S&P 500 futures and Nasdaq-100 futures also advanced. Gold futures, which hit a record level last week, pulled back slightly but remained up 15% for the year as investors sought safety from inflation and geopolitical tensions.
The previous week saw significant losses for the Dow and S&P 500, with both indices posting their worst performances in months. The Nasdaq Composite Index also recorded its third consecutive negative week. Concerns about inflation and disappointing earnings reports contributed to the market downturn.
The situation was further complicated by Iran’s direct attack on Israel over the weekend, raising fears of retaliation and adding to the geopolitical uncertainty. Oil prices, which had been climbing in recent weeks, were slightly lower following the attack.
Market analysts are closely watching how Israel and the U.S. will respond to the attack, with expectations of a potential relief rally if tensions ease. However, the energy team does not anticipate a significant drop in oil prices.
Investors will be focusing on earnings reports from Goldman Sachs and M&T Bank, as well as economic data including retail sales and manufacturing numbers. Treasury yields, which had been rising due to inflation concerns, eased as investors sought safety in government bonds.
Despite some positive earnings reports, such as JPMorgan Chase beating profit estimates, concerns about lending profitability and global uncertainties weighed on investor sentiment. CEO Jamie Dimon highlighted the challenges posed by persistent inflationary pressures and the uncertain global landscape.
Overall, the market remains volatile as investors navigate geopolitical tensions, inflation concerns, and corporate earnings reports. The coming week is likely to be closely watched for any developments that could impact market sentiment.
