Traders work on the floor of the New York Stock Exchange on April 1, 2024.
Brendan McDiarmid | Reuters
US stock futures rose on Monday, rebounding from last week's strong sell-off. Goldman Sachs Profits and hopes that the conflict in the Middle East will not escalate further.
Futures contracts are linked to the Dow Jones Industrial Average It rose 220 points, or 0.6%. Standard & Poor's 500 And Nasdaq-100 futures By 0.5% and 0.6%, respectively.
Iran launched drones and missiles at Israel on Saturday evening, in the first direct attack on Israel from Iranian territory. While the majority of threats have been intercepted, fears of retaliation remain
Gold futures It advanced slightly to trade at $2,376.30 an ounce. The metal hit a record high last week and has risen about 15 percent this year as investors search for safety from difficult inflation and geopolitical tensions.
But oil prices fell despite rising in the past few weeks before the attack, amid escalating tensions in the Middle East. This, coupled with the possibility of measuring Israel's response in light of the state's thwarting of the attack, provides positive signals for traders.
“Historically, geopolitical shocks cause short-term volatility, not long-term market declines,” said Emily Bowersock Hill, CEO of Bowersock Capital Partners. “But in this current environment, the risk of a prolonged period of volatility is greater, given the inflationary oil price shocks that may result from heightened tensions in the Middle East.”
How Israeli Prime Minister Benjamin Netanyahu will respond to the attack is a key outstanding question, Evercore ISI senior managing director Krishna Guha said in a note on Sunday. He pointed out that the Biden administration made clear that it did not want Israel to retaliate
“Provided that Netanyahu appears willing to follow US advice, there could be some elements of a rally in the markets on Monday,” Guha said. “However, our colleagues on the energy team do not expect a significant decline in oil prices.”
Goldman Sachs stock rose more than 3% in premarket trading after beating Wall Street expectations on both lines in the first quarter. This comes after several banking reports were released on Friday, with investors sending notice JP Morgan Shares fell 6% on concerns about what the financial giant might generate from lending next year.
Monday's pre-market action also comes on the heels of a tough week on Wall Street, as persistent inflation fears and a poor start to the new corporate earnings season weighed on investors.
the Dao It fell more than 2%, marking its second consecutive downward week and the largest loss since March 2023. After recording its largest decline since January on Friday, Standard & Poor's 500 It ended the week down about 1.5%, its worst performance since October 2023.
