Bargain hunting may contribute to initial strength on Wall Street

(RTTNews) – After ending the previous session with little change, stocks are likely to move higher in early trading on Friday. Major index futures are currently pointing to a higher open for the markets, with Dow Jones futures up 321 points.
Traders may once again try to look for bargains after the sharp drop shown by the markets over the past month.
The Dow and S&P 500 indices finished yesterday’s trading off session lows but still closed the day at their lowest closing levels in more than a year.
However, recent bargain-hunting efforts have been largely stymied by concerns about the Federal Reserve raising interest rates in an effort to combat high inflation.

Fed Chairman Jerome Powell’s comments that implementing a “soft landing” of the economy may be outside the central bank’s control may also limit buying interest.
“There are huge events and geopolitical events going on around the world that are going to play a very important role in the economy in the next year or so,” Powell said in an interview with Market Place on NPR on Thursday.
“So the question of whether or not we can perform a soft landing may actually depend on factors that we don’t control,” he added.
In US economic news, the Labor Department released a report showing that import prices did not change unexpectedly in the month of April.
The Labor Department said import prices stabilized in April, after rising by an upwardly revised 2.9 percent in March.
Economists had expected import prices to rise 0.6 percent compared to the 2.6 percent jump originally recorded from the previous month.

Meanwhile, the report showed export prices rose 0.6 percent in April after rising by a downwardly revised 4.1 percent in March.
Export prices were expected to rise 0.7 percent compared to the 4.5 percent originally reported for the previous month.
Shortly after the start of trading, the University of Michigan is due to release its preliminary report on consumer confidence for the month of May. The Consumer Confidence Index is expected to decline to 64.0 in May from 65.2 in April.
Stocks saw significant swings throughout the trading day on Thursday before ending the day little changed. After showing extreme volatility as the day progressed, the major averages mixed narrowly closed.
The major averages showed a notable recovery as the close approached, with the tech-heavy Nasdaq index rising 6.73 points, or 0.1 percent, to 11,370.96. Meanwhile, the S&P 500 fell 5.10 points, or 0.1 percent, to 3,930.08 and the narrow Dow Jones Industrial Average fell 103.81 points, or 0.3 percent, at 31,730.30.
In foreign trade, stock markets in the Asia-Pacific region rose sharply during Friday’s trading. Japan’s Nikkei 225 rose 2.6 percent, while Hong Kong’s Hang Seng rose 2.7 percent.

The major European markets have also shown strong moves to the upside today. While Germany’s DAX jumped 1.6%, Britain’s FTSE 100 and France’s CAC 40 rose 1.8% and 1.9%, respectively.
In commodities trading, crude oil futures jumped $1.99 to $108.12 a barrel after rising $0.42 to $106.13 a barrel on Thursday. Meanwhile, after dropping $29.10 to $1,824.60 an ounce in the previous session, gold futures fell $15.60 to $1,809 an ounce.
On the currency front, the US dollar is trading at 128.88 yen, compared to 128.34 yen, which it recorded at the close of New York trading on Thursday. Against the euro, the dollar was valued at $1.0381 compared to $1.0400 yesterday.

The opinions and opinions expressed here are those of the author and do not necessarily reflect the views and opinions of Nasdaq, Inc.

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