August 17, 2022

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US stock futures jump on the back of China’s interest rate cut

US stock futures jump on the back of China's interest rate cut

Global stocks and US stock futures rose, regaining some of their gains after the S&P 500 index came close to falling into a bear market and China’s central bank cut its key interest rate.

S&P 500-related futures are up 1.1%, suggesting that the broad market index may rebound after it closed down 0.6% It reached its lowest level since March 2021 on Thursday. Nasdaq 100 futures rose 1.4%, noting gains in technology shares after the opening bell. Dow Jones Industrial Average futures rose 0.9%.

Stocks have been under pressure this week due to concerns global growth. Investors have been concerned about the extent of the Federal Reserve’s response to the bout of high inflation and the Covid-19 virus in China, which has limited economic activity and contracted supply chains, leading to a selloff.

The S&P 500 is on track to close for the seventh consecutive week and is down about 3% so far. It came close to entering bear market territory in choppy trading on Thursday, a market short of a 20% decline from its recent peak.

On Friday, China’s central bank unexpectedly Lowering the key interest rate This serves as a benchmark for mortgages, a move that is expected to support the country’s housing market. Other rates were kept unchanged.

“We have growth concerns at the moment, coming from China and monetary policy in the US stinging, so this morning, sentiment helped move China,” said Aaron Say, multi-asset strategist at Pictet Asset Management. “But we still need to build more evidence to convince markets that an easy landing is possible.”

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Government bonds have risen significantly this week because they usually do well in times of economic stress. The yield on the benchmark 10-year Treasury rose on Friday to 2.859% from 2.854% on Thursday.

shares

Ross Stores

It fell 24% in pre-market trading after the retailer posted drop in sales She said she expects another drop this quarter.

foot locker

It rose 4% after the company’s chief financial officer said he expects the company’s full-year earnings to be at the upper end of guidance.

Palo Alto Networks

It jumped 12% after it reported quarterly revenue that beat analyst expectations. Fellow of the cyber security company

CrowdStrike

It also rose 5.3%.

agricultural equipment maker

monastery

It fell 5.8% before marketing despite its publication Increased sales and profits On strong demand.

“Earnings season has been good, with a little more companies than usual that beat expectations. Kiran Ganesh, multi-asset strategist at

UPS.

“This is going to be basic, this is somewhat of a preview.”

A trader worked on the floor at the New York Stock Exchange on Thursday.


picture:

Seth Winning/The Associated Press

Abroad, the Stoxx Europe 600 Index is up 1.6%. Asian stocks were also higher, with the Shanghai Composite up 1.6% and Hong Kong’s Hang Seng Index jumping 3%.

Swiss luxury goods house

Financière Richemont

It fell 9% after it missed analyst estimates on operating profit, citing Suspension of activity in Russia.

Oil prices rose, with Brent crude up 0.3% to trade at $112.42 a barrel.

Write to Anna Hirtenstein at anna.hirtenstein@wsj.com

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