Much against fears that the weakness seen in recent sessions will intensify, early indications suggest that the U.S. market may stay resilient despite the tensions brewing in the Middle East following Iran’s unprecedented attack on Israel.
What Futures Trading Tell: The major U.S. index futures traded slightly higher late Sunday, signaling that the market could weather storm kicked up by Middle East tensions.
As of 10 a.m. EDT, the Nasdaq Composite, S&P 500 and Dow futures were up 0.25%, 0.22% and 0.19%, respectively.
The U.S. stocks came under pressure in the week ended April 12 after the consumer price inflation report came in hotter-than-expected and the big bank earnings started on a sour note.
Sentiment on Monday could largely hinge on any the developments in the Middle East.
While Iran said the attack was in response to Israel's strike on its consulate in Syria on April 1 and that the matter can now be "deemed concluded," the Israeli war cabinet was discussing whether to retaliate. Latest update showed that Israeli forces bombed the Nuseirat refugee camp in central Gaza.
The United Nations is meeting to discuss the latest Middle East geopolitical tensions.
Israeli stocks took the latest development in stride. On Sunday, the The TA-125 Index, the Tel Aviv Stock Exchange's benchmark index, saw some volatility in the morning. After declining sharply in the mid-session, it recovered to close modestly higher.
Later today, traders get more big bank earnings, with Goldman Sachs Group, Inc. GS and M&T Bank Corporation MTB lined up to report earnings.
On the Main Street front, a couple of speeches by Federal Reserve officials, the results of New York Fed’s regional manufacturing survey for April, retail sales data for March and a homebuilder confidence reading may be on traders’ radar.
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Asia Retreat: The major markets in Asia, potentially due to their proximity to the Middle East, traded mostly lower. Japan’s Nikkei and Hong Kong’s Hang Seng were all down sharply, while the Chinese stocks opened on a firm note.
Crude, Gold Steady: Belying expectations of a sharp rally on supply fears, crude oil futures were steady. At last check, a barrel of WTI grade crude was down about 0.25% at $85+ barrel level. Gold, despite its safe-haven appeal, slid modestly to $2,370.80 an ounce.
Cryptos Rebound: After retreating close to the psychological level of $60,000, Bitcoin BTC/USD rebounded. At last check, the apex crypto traded up over 2% to $65,360.44.
The SPDR S&P 500 ETF Trust (NYSE SPY) and the Invesco QQQ Trust QQQ ended Friday’s session down 1.38% and 1.59%, respectively, according to Benzinga Pro data.
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