S&P 500 futures rise 1% as the market is set to rebound from a brutal week

Stock futures rose in the early hours of Monday as investors assessed a more aggressive Federal Reserve and the possibility of a recession.

The futures on the stock market gained a lot. The S&P 500 futures increased by 1.1%. Stock markets were closed for Juneteenth.

Fears that the central bank will hike rates aggressively to tame inflation will cause the major averages to lose their 10th week in a row. The S&P 500 went into bear market territory for the first time last week. The benchmark is close to its all time high.

The blue-chip index fell below 30,000 last week for the first time in more than two years. The tech-laden index fell from its record high.

The recent drop in equity markets and investor attitudes make a bottoming thesis more difficult to make. The investors are acting emotional but the weakness in the technicals is starting to show.

Powell will testify before congress. The central bank raised its rate by three-quarters of a percentage point, its biggest increase in 18 years.

Existing home sales on Tuesday will be watched by investors to see the health of the economy. Recent data showing low consumer confidence, falling retail spending and a cooling housing market have fueled recession fears as the Fed battles inflation at 41 year highs.

Cryptocurrencies were on a roller-coaster ride. After falling to a new low of $17,605.58 over the weekend, it rebounded to a new high of $20,000. It is 70% below its all-time high hit in November.