Wall Street showed signs of recovery early Monday after a challenging week impacted by mixed messages regarding some of President Trump’s new economic strategies.
Futures for the S&P 500 increased by 0.5% prior to the market opening, with Dow Jones Industrial Average futures rising by 0.7%. Futures for the Nasdaq also rose, gaining 0.4%.
On Friday, the S&P 500 experienced a significant drop of 1.7%, marking its worst performance in two months, following disappointing economic data from the U.S. The Dow Jones Industrial Average mirrored this decline, also falling 1.7%, while the Nasdaq composite suffered an even steeper fall of 2.2%.
In early trading, shares of Domino’s Pizza saw a decrease of 3.3% after its fourth-quarter performance did not meet Wall Street’s expectations, primarily due to slower sales growth in the U.S.
This week is expected to see a slowdown in corporate earnings reporting, but several prominent companies, such as Home Depot, Nvidia, and Paramount, are slated to disclose their latest financial results.
Moreover, investors will be looking out for an updated consumer confidence report and a revised estimate of fourth-quarter GDP. A significant inflation report is also anticipated to be released on Friday.
Recent stronger-than-expected profit announcements have helped ease some concerns regarding persistent inflation, which might hinder the Federal Reserve from providing further economic relief via lower interest rates.
The Fed has maintained its main interest rate after making substantial cuts throughout the last year. During their last policy meeting in January, Fed officials indicated that they may keep rates stable for the time being due to the potential impact of Trump’s proposed tariffs and mass migrant deportations, among other issues, which could heighten inflationary pressures.
Although lower interest rates can stimulate economic growth, they can also foster spending, which might lead to increased inflation.
In European markets, German stocks made gains following a conservative election victory amid worries regarding the continent’s leading economy. The DAX index rose by 0.7% as preliminary results confirmed that the mainstream conservative party, led by Friedrich Merz, secured the national election, while a far-right party emerged as the second largest in the country.
Conversely, the CAC 40 in Paris fell by 0.3%, and the FTSE 100 in Britain remained relatively unchanged.
Japanese markets were closed for a holiday. In other Asian markets, Hong Kong’s Hang Seng index fluctuated before closing 0.6% higher at 23,341.61. The Shanghai Composite index dipped by 0.2% to 3,373.03.
Australia’s S&P/ASX 200 registered a small gain of 0.1%, reaching 8,308.20. South Korea’s Kospi lost 0.4%, falling to 2,645.27, while Taiwan’s Taiex dropped by 0.7%. India’s Sensex also reflected a decline of 0.7%.
Today’s Stock Market: Wall Street recovers some losses from last week with ongoing earnings releases
