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U.S. stock futures bounced higher on Monday, with an array of factors ranging from Russia’s invasion of Ukraine to Chinese lockdowns likely to keep markets volatile.
What’s happening
-
Futures on the Dow Jones Industrial Average
YM00,
+1.08%
rose 267 points, or 0.8%, to 33080 -
Futures on the S&P 500
ES00,
+0.91%
gained 0.7%, or 29 points, to 4221 -
Futures on the Nasdaq 100
NQ00,
+0.61%
climbed 50 points, or 0.4%, to 13339
On Friday, the Dow Jones Industrial Average
DJIA,
fell 230 points, or 0.69%, to 32944, the S&P 500
SPX,
declined 55 points, or 1.3%, to 4204, and the Nasdaq Composite
COMP,
dropped 286 points, or 2.18%, to 12844.
The S&P 500 has dropped four of the last five weeks and is down 12% from its record close established just after the new year.
What’s driving markets
A fourth round of talks between Ukraine and Russia were being held, after a weekend in which Russia pounded a military training base near the border with Poland, killing at least 35 people. Russia continued its offensive on Monday throughout Ukraine.
U.S. and Chinese security officials were meeting in Rome on Monday as the U.S. alleged that Russia was seeking military equipment from the world’s number-two economy.
China meanwhile locked down the key southeastern manufacturing hub of Shenzhen as it also combats a COVID outbreak in the northeast of the country. The Hang Seng
HSI,
slumped 5% and the Shanghai Composite
SHCOMP,
fell nearly 3%.
The Chinese lockdowns have the potential to further exacerbate supply-chain woes with inflation already running at nearly 8%. The Federal Reserve on Wednesday is expected to make its first interest-rate hike in response to the surge in inflation.
Ahead of that decision, bonds were selling off, as the yield on the 30-year Treasury
TMUBMUSD30Y,
rose 9 basis points to 2.45%.
Strategists at Goldman Sachs lowered their year-end price target to 4,700 from 4,900, citing the surge in commodities prices and the weaker outlook for U.S. and global growth. Goldman’s economists on Friday had cut their GDP forecast and said the odds of a U.S. recession next year were as high as 35%.
