logo
Plus   Neg
Share
Email

U.S. Stocks May Open Higher After Last Week's Volatility

wallstreet-oct16_19aug19-lt.jpg

Following last week's wild ride, stocks are likely to move to the upside in early trading on Monday. The major index futures are currently pointing to a notably higher open for the markets, with the Dow futures up by 292 points.

Continued optimism about new global stimulus may contribute to initial buying interest after the People's Bank of China said it would use market-based reform methods to help lower real lending rates and prop up a slowing economy.

News that President Donald Trump's administration is once again delaying restrictions on Chinese tech giant Huawei may also contribute to early strength on Wall Street.

Commerce Secretary Wilbur Ross revealed the news in an appearance on the Fox Business Network, announcing a "temporary general license" set to expire on Monday will be extended for another 90 days.

The move will allow Huawei to continue purchasing supplies from U.S. companies despite being placed on an economic blacklist back in May.

"There is another 90 days for the U.S. telecom companies, some of the rural companies are dependent on wild ways," Ross said. "So we're giving them a little more time to wean themselves off. But there are no specific licenses being granted for anything."

The upward momentum also comes after Trump's economic advisers took to the Sunday talk shows to downplay concerns about a possible recession.

Trump himself told reporters that he does not foresee an economic downturn even after last week's yield curve inversion, which is widely seen as an early recession indicator.

"I don't think we're having a recession," Trump said. "We're doing tremendously well. Our consumers are rich. I gave a tremendous tax cut and they're loaded up with money."

Following the lackluster performance seen last Thursday, stocks moved sharply higher over the course of the trading day on Friday. The major averages all climbed firmly into positive territory after ending Thursday's trading mixed.

The major averages reached new highs late in the session but pulled back going into the close. The Dow jumped 306.62 points or 1.2 percent to 25,886.01, the Nasdaq soared 129.38 points or 1.7 percent to 7,895.99 and the S&P 500 surged up 41.08 points or 1.4 percent to 2,888.68.

Despite the strong gains on the day, the major averages moved notably lower for the week. The Dow tumbled by 1.5 percent, the S&P 500 slumped by 1 percent and the Nasdaq slid by 0.8 percent.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index advanced by 0.7 percent, while China's Shanghai Composite Index surged up by 2.1 percent.

The major European markets have also shown strong moves to the upside on the day. While the U.K.'s FTSE 100 Index has jumped by 1.2 percent, the French CAC 40 Index and the German DAX Index are both up by 1.4 percent.

In commodities trading, crude oil futures are rising $0.38 to $55.25 a barrel after climbing $0.40 to $54.87 a barrel last Friday. Meanwhile, an ounce of gold is trading at $1,508.10, down $15.50 from the previous session's close of $1,523.60. On Friday, gold slid $7.60.

On the currency front, the U.S. dollar is trading at 106.64 yen compared to the 106.38 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is valued at $1.1100 compared to last Friday's $1.1090.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT
>