U.S. stock futures edged higher on Monday after coming out of its worst week since 2020 amid recession fears and aggressive moves by the central bank to tame inflation.
The stocks in Wall Street have been performing poorly this month, notably last week as the S&P 500 closed down 5.8% for the week in the bear market. Dow Jones and the Nasdaq Composite both dropped 4.8% last week.
The market saw some light at the end of the week after the S&P 500 and Nasdaq closed higher on Friday by 0.22% and 1.43%, respectively.
Stock futures also pointed higher on Monday despite the markets in the U.S. being closed on Monday for a holiday. Dow Jones Futures rose 0.40%, S&P 500 increased 0.54% and Nasdaq grew 0.72%.
As the market has been dipping into the bear market while investors have priced in negative outlooks, the U.S. markets could be looking toward a rebound up to the week before the Fed’s meeting in July. However, the pace might be difficult moving forward as concerns over the possibility of inflation not stopping at May’s high could still weigh the market down.
In the meantime, the market could be pricing in the sentiment that the U.S. President Joe Biden said that he plans to talk to Chinese leader Xi Jinping soon as he is considering lifting some tariffs on Chinese goods imposed by the former president Donald Trump.
If the talks go through, it could help lower the cost of living for Americans in the near term.