U.S. Equity Futures trade lower before the last trading session of the week.
On Wall Street, stocks broadly rose for the second day in a row, reversing the week’s losses. Investors were happy to have obtained from the Federal Reserve the day before that it was not about to raise interest rates.
US stocks rose for the second day in a row, reversing the sharp decline at the start of the week. The S&P 500 rose 1.2% to 4,448.98. Over 85% of the companies in the benchmark posted gains.
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The Dow Jones gained 1.5% to 34,764.82, while the Nasdaq rose 1% to 15,052.24. The Russell 2000 rose 1.8% to 2,259.04. That’s up 1% for the week.
The rally put the main indices on the pace of weekly gains just four days after a large sell-off on Monday gave the S&P 500 its biggest slippage since May and sent the Dow down more than 600 points.
Large fluctuations in the market reflect how quickly investor sentiment can change. As the market hovers near historic highs, traders tend to view waves of selling as buying opportunities.
Traders felt uneasy about how quickly the US Federal Reserve might choose to curb some of the support measures it has given to markets and the economy. Those concerns were allayed on Wednesday, when the Federal Reserve signaled that it would not start considering such a decrease in support until at least November, and indicated that it could start raising its benchmark interest rate on next year.
The Fed has said it will likely begin to slow the pace of monthly bond purchases made throughout the pandemic to help keep borrowing costs low “soon” if the economy continues to improve.
Meanwhile, Japan’s benchmark rose, but other Asian markets were down on Friday amid concerns over struggling Chinese real estate developer Evergrande and the pandemic.
Some Chinese banks have revealed what they are owed by Evergrande, seeking to allay fears of financial turmoil as it grapples with debt of less than $ 310 billion. Lenders say they can face a potential default. Evergrande’s announcement that she was making a payment due on Thursday appeared to allay some concerns.
Japan’s benchmark Nikkei 225 jumped 2.1% to close at 30,248.81 after it reopened from Thursday’s national holiday. South Korea’s Kospi edged down 0.1% to 3,125.02. The Australian S & P / ASX 200 slipped 0.4% to 7,342.60. The Hong Kong Hang Seng lost 0.2% to 24,463.66, while the Shanghai Composite lost nearly 0.6% to 3,622.10.
Mizuho Bank’s Masayuki Tsunashima warned that there were still risks to the markets due to the potential problems of Evergrande. Protracted coronavirus outbreaks also pose risks, he said.
“So one cannot rule out that optimism remains fragile or, at the very least opportunistic, because the underlying risks have simply not been addressed, let alone put to bed,” he said. “And this is consistent with the fact that markets remain subject to volatility and negative shocks. “
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In energy trading, benchmark US crude oil rose 7 cents to $ 73.37 per barrel in electronic trading on the New York Mercantile Exchange. It gained $ 1.07 to $ 73.30 a barrel on Thursday.
Brent crude, the international standard, added 20 cents to $ 77.45 a barrel.
In currency trading, the US dollar rose from 110.30 yen to 110.52 Japanese yen. The euro cost $ 1.1737, little change from $ 1.1736.