U.S. stock futures rose on Monday as traders attempted to add to last week’s sharp gains.
Futures linked to the Dow Jones Industrial Average rose 189 points, or 0.6%. S&P 500 futures and Nasdaq 100 futures rose 0.5% and 0.1%, respectively.
Yields on the 10-year Treasury note continued to retreat from 14-year highs on Monday and were last at 4.17%. It topped 4.33% at some point on Friday, before the Wall Street Journal reported that some Fed officials were increasingly worried about raising rates too much.
It’s another volatile week for stocks as the third-quarter earnings season heats up. The major indexes posted their biggest weekly gain since June, with the Dow up 4.9%. The S&P 500 and Nasdaq rose 4.7% and 5.2%, respectively.
Most of those gains came on Friday, when the Dow rose more than 700 points, while the S&P 500 and Nasdaq each gained around 2.3%.
Investors will focus on the earnings of tech giants such as apple, letter, Amazon and Microsoft this week. Wall Street will also be watching for more inflation data, with October manufacturing and services PMIs due on Monday.
“The S&P 500 is up +4.7% for the week, with energy/materials and technology outperforming and defensives underperforming, essentially reversing a broad trend since early August,” Raymond James analyst Tavis McCourt said on Wednesday. said in a report today. “Whether the rally is sustainable, or to what extent, is unknown, but the reasons appear to be EPS revisions, which appear to be better than feared so far (much like Q2), and a strong sense of front-loading The Fed cycle is expected to end in early 2023.”
So far, earnings reports for stocks have had mixed results. Bank stocks Goldman Sachs and JPMorgan Chase & Co. rose more than 4 percent on Friday after reporting results. But not all results were solid — Snap fell 28% after reporting an earnings miss.