US pre-open: S&P 500 to rebound from two-month low
US stocks were expected to bounce back after hitting two month-lows last week, on what’s set to be a quiet day for earnings and economic data.
Futures were pointing to gains of 0.4% to 0.6% across the three main benchmark indices on Wall Street in pre-market trade.
The S&P 500 closed Friday’s session at 4,369.71, its lowest close since 26 June, with the index on track for its worst monthly loss of the year.
Eyes were already starting to turn to the Federal Reserve’s annual Jackson Hole conference on Thursday to Saturday, after the minutes from the recent FOMC meeting drove 10-year Treasury yields to a 15-year high last week.
“All eyes will be on how Fed officials [...] react to the strength of the economy and potential inflation risks ahead of the September 20th meeting. Bear in mind we will see another round of jobs and inflation data before that,” said analysts at Deutsche Bank in their weekly preview on Friday.
Company news is likely to be thin on the ground to start the week, but Zoom the only corporate to release earnings – due out after the closing bell. No major economic data was due for publication either during Monday’s trading session.
Blue-chip tech stocks will be looking to recover after some significant losses, as the recent drop in bond prices drove investors away from longer-term, high-growth investments like tech. For example, the Nasdaq has dropped over 6% over August so far, with names like Google, Amazon and Microsoft bearing the brunt of selling pressure.
Palo Alto Networks was performing well in pre-market trade after beating estimates with its quarterly earnings after the closing bell on Friday.