U.S. stock futures rise for a second day as the market claws its way back from September losses

U.S.-stock-futures-rise-for-a-second-day -as-the-market-claws-its-way-back

September 28, 2021: -U.S. stocks were set to jump for a second day as fears around a crisis in China’s property market eased somewhat and as the Federal Reserve kept the current monetary stimulus in place for just a little bit longer.

Futures contracts tied to the Dow Jones Industrial Average gained 238 points or 0.6%. S&P 500 futures increase 0.6% and Nasdaq 100 futures gained 0.6%.

Stocks linked to a global economic recovery increase in premarket trading. Freeport-McMoRan shares added 3.5%. Las Vegas Sands, which has considerable China exposure, rose 1.5%. Caterpillar said nearly 1%. Energy stocks were also higher.

Hong Kong’s Hang Seng index rebounded above 1% from losses this week, with China property developer Evergrande Group rallying above 17%. On Wednesday, the company eased fears a bit by resolving payment on a local bond.

But global investors are still waiting on whether the company will pay $83 million in interest on a U.S. dollar-denominated bond due Thursday. Bloomberg News reported that government regulators instructed Evergrande to avoid a near-term dollar bond default, citing a familiar person.

On Thursday, at the same time, Wall Street Journal reported that the Chinese government is asking local authorities to prep for a “possible storm” if Evergrande fails. U.S. futures came off their highs following the WSJ report.

The Labor Department reported Thursday morning that initial jobless claims increased in the previous week as the U.S. labor market continues its recovery from last year’s recession. There were 351,000 claims last week, topping estimates of 320,000. The reading for the week prior came in at 332,000.

On Wednesday, Stocks finished higher across the board after the Federal Reserve kept benchmark interest rates unchanged, indicating no immediate intention of removing stimulus policies.

The Dow gained 340 points, or 1%, for its first positive session in five and best day since July 20. The S&P advanced 0.95%, snapping a four-day losing streak and registering its best day since July 23. The Nasdaq Composite ends the session 1.02% higher, while the Russell 2000 outperformed on the session, which rises 1.48%.

“If progress continues as expected, the Committee judges that a moderation in the speed of asset purchases may soon be warranted,” a statement from the Fed following the meeting read. No timeline was given.

Last year, the central bank implemented a $120 billion per month bond-buying program as the pandemic shuttered the economy. As economic conditions improve, more Federal Open Market Committee members now see the first rate hike in 2022.

Editor's Choice

Posts You Might Like

Leave us a message


Fill the form our team will contact you

Advertise with us

Fill the form our team will contact you​