U.S. stock index futures were mixed in the early hours of Monday morning, reflecting mixed sentiments around strong economic recovery amid high inflation and higher interest rate hike speculations.
Futures on the Dow Jones Industrial Average (DJIA) lost 0.04% and those on the S&P 500 (SPX) gained 0.09%, as of 7:06 a.m. EST., Monday. Meanwhile, the Nasdaq 100 (NDX) futures climbed 0.35%.
The indexes ended the regular trading hours of Friday in green, with the Dow gaining 0.4%, the S&P 500 increasing 0.34%, and the Nasdaq 100 climbing 0.15%.
This positive end to the first day of the new quarter had come despite the lower–than–expected employment report for March. According to the Bureau of Labor Statistics, the U.S. economy added 431,000 jobs in March, which was lower than the Dow Jones estimate of 490,000.
It looks like investors are encouraged just by the fact that there were so many job additions even during times of an uncertain economic outlook. Last week, the yields on the 2-year and 10-year Treasury bonds inverted for the first time in 3 years, sparking fears of a recession. Experts believe that the impending tightening of monetary policy by the Fed might hurt growth, which is why investors are flocking to short-term bonds.
Moreover, the latest developments in Ukraine are also constantly under scrutiny. The possibility of more sanctions being imposed on Russia by the West in the forthcoming days is also leading to conflicting sentiments among market participants.
The Fed’s March meeting minutes are expected to be published on Wednesday, giving us a clearer picture of how far the Fed expects to tighten its policies.
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