In a promising turn of events for investors, stock futures are pointing towards a positive start, signaling a potential recovery after a challenging August.
Futures tied to the Dow Jones Industrial Average (^DJI) are up 0.3%, while those linked to the S&P 500 (^GSPC) are showing a 0.5% increase. The tech-focused Nasdaq Composite (^IXIC) is leading the rebound with a 0.7% gain, aiming to recover from last week’s more than 2% dip.
The trajectory of bond yields is another aspect to watch. The yield on the 10-year Treasury bond, a key benchmark, is hovering around 4.3%, staying close to levels not witnessed in over a decade.
These developments coincide with renewed attention on the Federal Reserve’s actions regarding interest rates. As the markets enter what has been a relatively quiet week, all eyes are on Fed Chair Jay Powell’s upcoming speech at the annual banking conference in Jackson Hole, Wyoming, scheduled for Friday. Last week’s concerns about the future trajectory of interest rate hikes significantly contributed to the market’s recent losses.
Turning to corporate earnings, today’s spotlight is on Zoom (ZM). The week will be highlighted by Nvidia (NVDA) on Wednesday, as the company aims to build on the momentum from its impressive guidance last quarter. Notably, Nvidia’s stock has surged over 200% in value since the beginning of this year.