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Futures contracts on the Dow Jones Industrial Average rose 100 points. S&P 500 futures were up 0.2% and Nasdaq 100 futures were little changed.
Wall Street has just had a week’s rollercoaster ride amid a multitude of worries ranging from Chinese real estate giant Evergrande’s debt crisis to the Federal Reserve’s signal to roll back monetary stimulus and to Beijing’s crackdown on cryptocurrencies. Still, the major averages managed to erase large losses earlier in the week and make small gains.
The Dow blue chip ended the week 0.6% higher, breaking a three-week losing streak. The S&P 500 rose 0.5% on the week, while the tech-rich Nasdaq Composite edged up 0.02% last week.
September so far lives up to its reputation for volatility and weakness, as the major averages have all posted modest losses. The S&P 500 is down 1.5%, on course to post its first negative month since January. The broad benchmark for equities is about 2% off its September 2 high. The Dow Jones is down 1.6% for the month, while the Nasdaq is down 1.4%.
“We continue to be cautious in the short term, especially as we enter the weakest time of the year (end of September – mid-October),” said Larry Adam, CIO at Raymond James, in a note. “However, given the robust and continued economic growth, our bias is to maintain exposure to existing equities or to add opportunistically in case of weakness. “
Investors are monitoring progress in Washington as lawmakers try to prevent a government shutdown, a default on US debt and the possible collapse of President Joe Biden’s broad economic agenda.
House Speaker Nancy Pelosi said on Sunday that she expects the bipartisan $ 1,000 billion infrastructure bill to pass this week, but the vote on the legislation could be pushed back compared to his original Monday schedule.
Congress must pass a new budget by the end of September to avoid a shutdown, and lawmakers must also find a way to raise or suspend the debt ceiling in October before the United States defaults on its debt. debt for the first time.
Elsewhere, bitcoin rebounded around 2% to $ 43,454 after falling 5% on Friday. The sale came after China’s central bank declared all cryptocurrency-related activities illegal.