DJIA futures rebound from Wall Street’s losing week

Dow Jones Industrial Average is on track to recover on Monday as futures tied to the index traded higher. US stock futures previously declined amid the souring risk sentiment.

The DJIA contracts gained 0.41% or 139.00 points to the $33,020.00 level, signalling a rebound. Similarly, the futures linked to S&P 500 and Nasdaq Composite added 0.51% and 0.64%, respectively.

The early morning action followed another disappointing week for market participants as the major averages suffered modest losses. Last week, the S&P 500 and the Nasdaq dropped 1.20% and 10%, respectively.

Consequently, the blue-chip DJIA slipped 1.05% or 348.58 points to the $32,899.70 level, marking the ninth negative week.

The previous downdraft came as market participants bet that the Federal Reserve would tighten monetary policy aggressively to counteract the surging inflation. Investors worried that the central bank could raise interest rates too fast and too much, causing a recession.

In May, the US economy gained 390,000 jobs, well above the forecasted 325,000. However, the result eased from the prior record of 436,000.

Nevertheless, the labor market remains resilient despite the mounting consumer prices. The significant additions came in the leisure and hospitality industries. The upturn of nonfarm payrolls contrasted the fears of an economic slowdown and surging inflation pressures.

Meanwhile, several traders believe that the robust hiring data could pave the way for the Fed to remain aggressive, dragging the DJIA.

DJIA focus on economic data this week

Ahead in the week, the movement of DJIA will reflect the fresh inflation rate figures for May.

Specifically, investors focused on the consumer price index reading for the last month. They expected the key gauge to be at 8.30%, holding slightly below a 41-year high of 8.50% in March. Correspondingly, the more relaxed figure could signify that inflation has peaked.

Moreover, traders also look forward to the release of the trade balance, exports, imports and the preliminary Michigan consumer sentiment.

The stock market has had a volatile year, with the DJIA pulling back double digits from its record highs. Likewise, the S&P 500 is off by 14.70% from its all-time high reached in January. The equity benchmark also briefly dipped into bear market territory last month.