Dow futures rise 220 pts; Fed Speakers, Amazon in Focus
U.S. stocks rose in the week’s opening trade session, bouncing back from last week’s losses on optimism that this week’s comments from Federal Reserve speakers will show that last week’s sell-off was overdone.
The Dow Futures contract gained 220 points or 0.7% at 7:05 AM ET. S&P 500 Futures gained 20 points or 0.5%, while Nasdaq 100 Futures started out weak, with 65 points or 0.5% setback.
The blue-chip Dow Jones Industrial Average dipped 3.5% last week, its worst week since late October. The broad-based S&P 500 dropped 1.9%, its worst weekly performance since late February, while the tech-heavy Nasdaq Composite declined 0.2%.
A hawkish turn by the Federal Reserve had investors adjust their positions. The central bank’s policymakers, in the form of a dot plot, indicated the likelihood of interest rate rising in 2023, a year earlier than expected.
Investors await Fed Chairman Jay Powell’s speech on Tuesday regarding the central bank’s emergency lending programs and current policies before the House Select Subcommittee on the Coronavirus Crisis.