FX.co ★ U.S. Stocks May Stage Another Rebound Attempt

Following last week's significant downturn, stocks may see a rise in early trading on Monday. The major index futures, including the S&P 500, suggest a brighter start to the market, with a 0.4% increase predicted.

Wall Street may experience an initial burst of activity as traders scramble for bargain stocks, with both the Nasdaq and the S&P 500 hit hard by six consecutive drops that have seen them slide to two-month lows.

However, previous attempts to reset the balance have been fleeting due to ongoing fears about the future of interest rates. The imminent release of several key US economic reports may also sway traders from making substantial moves. These reports span new home sales, durable goods orders, and personal income and spending.

The Commerce Department's personal income and spending report, which includes inflation readings synonymous with the Federal Reserve's preferences, will be under particular scrutiny. The earnings season is also set to ramp up, with companies such as Tesla, Boeing, IBM, Caterpillar, Honeywell, Alphabet, Intel, Microsoft, Chevron, and Exxon Mobil due to release quarterly results.

The recent pressure on technology stocks resulted in a sharp fall in the Nasdaq during Friday’s trading, extending its recent adverse trend. Whilst the S&P 500 also saw further drops, the Dow managed to resist the overall decline.

Across the Asia-Pacific area, Monday’s trading saw mainly positive movements in the stock markets. Japan's Nikkei 225 Index surged by 1.0%, and Hong Kong's Hang Seng Index jumped by 1.8%. Europe's major markets have also started in the green today, as evidenced by the UK’s FTSE 100 Index spiking by 1.6%, and increases in the German DAX Index and the French CAC 40 Index.

In commodities trading, crude oil experienced a dip to $82.68 a barrel after rising to $83.14 on Friday. Gold futures also took a significant fall to $2,359.20 an ounce after previously climbing by $15.80 in the previous session.

Concerning currencies, the US dollar is trading at 154.70 yen, a slight increase from Friday's closing of 154.64 yen. Against the euro, the dollar is trading at $1.0642, compared to last Friday’s $1.0656.