Stock futures rose in the early hours of Sunday as the Russia-Ukraine war continued to escalate and the Federal Reserve could hike rates for the first time in a year.
The futures on the Industrial Average gained 150 points. The S&P 500 futures were higher.
Russian forces are bombarding cities across the country, killing civilians who are unable to escape. Ahead of a scheduled bond payment, the financial impact of Russian sanctions will come into sharper focus.
The Fed is expected to raise its target fed funds rate by a quarter percentage point on Wednesday. The central bank's new forecasts for rates, inflation and the economy are being watched by investors.
Lindsey Bell, chief markets and money strategist at Ally, said that the Fed is expected to be cautious when it comes to interest rate policy. As it makes rate decisions throughout the year, the central bank will likely remain data dependent.
The blue chip index fell 2% last week, its fifth negative week in a row. The S&P 500 and the Nasdaq lost 2.5% and 3.5% last week, their biggest weekly losses since January.
Major averages have fallen into correction territory as asset prices have fallen. The S&P 500 has fallen more than 9% from its all-time high, while the blue-chip Dow is down more than 10% from its all-time high. The tech-laden Nasdaq fell more than 20% from its record high in November.
The near-term risk/reward is positive if the tape can sustain a material break below the 4200 level.
All Rights Reserved © 2024
