Following the mixed performance seen last week, stocks are likely to move to the upside in early trading on Monday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 134 points.
Economic optimism may contribute to initial buying interest on Wall Street, as the country continues to reopen following the coronavirus pandemic.
Reopening plays are seeing pre-market strength along with technology stocks, which may benefit from a rebound in the value of bitcoin.
Trading activity may be somewhat subdued, however, with a lack of major U.S. economic data likely to keep some traders on the sidelines.
The economic calendar starts the week relatively quiet but picks up in the coming days with the release of reports on new home sales, consumer confidence, durable goods orders, and personal income and spending.
The personal income and spending report includes a reading on inflation said to be preferred by the Federal Reserve, which could have an impact on the outlook for monetary policy.
While the Fed has repeatedly signaled it believes the recent increase in inflation largely reflects “transitory factors,” a spike in prices could still raise concerns about the central bank tapering its asset purchases.
After moving to the upside early in the session, the major U.S. stock indexes turned mixed over the course of the trading day on Friday. While the Dow managed to remain in positive territory, the Nasdaq and the S&P 500 slid into the red.
The major averages finished the day on opposite sides of the unchanged line. The Dow rose 123.69 points or 0.4 percent to 34,207.84, but the Nasdaq fell 64.75 points or 0.5 percent to 13,470.99 and the S&P 500 edged down 3.26 points or 0.1 percent to 4,155.86.
For the week, the major averages also turned in a mixed performance. While the Nasdaq climbed by 0.3 percent, the Dow and the S&P 500 slid by 0.5 percent and 0.4 percent, respectively.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan’s Nikkei 225 Index edged up by 0.2 percent, while Hong Kong’s Hang Seng Index dipped by 0.2 percent.
Meanwhile, European stocks are mostly higher in light trading, with several markets in the region closed for holidays. While the French CAC 40 Index is just above the unchanged line, the U.K.’s FTSE 100 Index is up by 0.1 percent.
In commodities trading, crude oil futures are climbing $0.85 to $64.43 a barrel after spiking $1.64 to $63.58 a barrel last Friday. Meanwhile, after falling $5.20 to $1,876.70 an ounce in the previous session, gold futures are rising $8.40 to $1,885.10 an ounce.
On the currency front, the U.S. dollar is trading at 108.88 yen versus the 108.96 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.2208 compared to last Friday’s $1.2182.
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