Stock Futures Rise
Stock Futures Rise
Stock futures rose Monday after the major indices posted their first significant gain of the new trading year.
Dow Jones Industrial Average futures gained 92 points, or 0.3%, while S&P 500 and Nasdaq 100 futures gained 0.4% and 0.51%, respectively.
The moves followed the first major market rally of 2023. After the December jobs report indicated that inflation might be easing, the Dow rose 700 points, or 2.13%, while the S&P 500 and Nasdaq Composite gained 2.28% and 2.56%, respectively.
Nonfarm payrolls were slightly higher than expected, but wage growth was slower than expected. This, along with data showing a contraction in the services sector, raised hopes that the central bank’s rate hikes have the desired effect.
The payrolls report released on Friday and reports of various industry layoffs indicates that the labor market is loosening up. However, the economy may still need some work. The Dow and S&P had their best weeks since November, as all major indices finished Friday’s session with weekly gains. The Nasdaq had its best session since December 29, while the Dow and S&P had their best day since November 30. The likelihood that central banks will soon stop making rapid interest rate increases as inflation declines from record highs is encouraging to global markets.
With most industries and significant bourses starting the day in positive territory, the Stoxx 600 index in Europe increased by 0.4%. Food, beverages, and utility stocks fell the most, falling 0.7%, while construction stocks led the gains, rising 2.1%.
Asian Stocks Experience Gains
At the start of Hong Kong trading, Alibaba shares increased by as much as 5.8%, leading gains following reports that Ant Group founder Jack Ma had given up control of the business. Ant Group is an affiliate of Alibaba, which owns 33% of the fintech company.
Other technology companies rose as well, with NetEase up 1.92% and Tencent up 1.49%.
Casino shares in Hong Kong rose in the first session after the city restored visa-free travel with mainland China. MGM China increased by 4.52%, Wynn Macau increased by 4.25%, Sands China increased by 3.89%, and SJM Holdings increased by 2.14%.
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