On Sunday, stock futures rose slightly in overnight trade, ahead of a busy week of corporate earnings. Dow Jones Industrial Average futures climbed 0.1%, while S&P 500 and Nasdaq-100 futures gained 0.12% and 0.16%, respectively.
The stock market has had a volatile session and week. The S&P 500 rose 0.45% for the second week in a row, while the Dow Jones Industrial Average gained 0.79%. The Nasdaq Composite sank around 0.2% for the week and 1.23% on Friday, while the S&P fell 0.5% and the Dow gained 0.12%.
Oil prices rose more than 5% on Friday, posting their biggest day since April, as the confrontation between Israel and Hamas fuelled concerns about the region’s oil supply. Meanwhile, Wall Street weighed a barrage of data from big financial institutions, with JPMorgan Chase and Wells Fargo gaining 1.5% and 3%, respectively.
Despite these mainly good results, Wall Street is prepared for greater volatility as rates and oil prices climb, inflation stays sticky, and violence in the Middle East erupts, according to Eric Johnston, Cantor Fitzgerald’s head of equities derivatives and cross-asset.
He also said that this Mideast situation is kind of showing that when you own equities, you are taking risks. He mentioned that as a result, we need to have significant upside returns to justify that risk, because something like this might happen out of nowhere.
Over the weekend, Israel’s military urged civilians in northern Gaza to flee ahead of a widely anticipated ground invasion. Meanwhile, US Senate Majority Leader Chuck Schumer (D-NY) indicated on Sunday that the Senate would work fast to pass a military aid package to help Israel fight Hamas.
This week marks the start of earnings season, with 11% of the S&P 500 set to report results. Johnson & Johnson, Bank of America, Netflix, and Tesla are among the big companies on the docket. Charles Schwab will release earnings before the market opens on Monday.
On the economic front, Wall Street is anticipating the release of the Empire State Index for October on Monday.
Please note that this article does not offer any instructions or suggestions regarding investment decisions. It is important for you to conduct your own research or seek professional advice from a qualified professional before conducting an investment decision.