Markets Optimistic with Monday Futures

April 9, 2018
1225 Views

U.S. stock markets open today for another week of trading, and some futures have already been promising. Volatility will continue, but early figures suggest that there is still some confidence in the market.

Futures on early Monday morning were:

  • Dow Jones Futures up 0.73%
  • S&P Futures up 0.69%
  • NASDAQ Futures up 0.91%

This is good news for investors that have come from a week of worrying stories. The trade war situation with the U.S. and China had escalated last week, even as White House officials aim to downplay the seriousness of the situation.

On Sunday, President Trump said on Twitter that “China will take down its trade barriers because it is the right thing to do.” The President also said that taxes would become reciprocal and that intellectual property deals would be made. This is in contradiction to what the Chinese foreign ministry has said, with a spokesman saying that the U.S. was the cause of recent tensions, and that China was not ready to negotiate.

Despite the contradictory news and announcements that have circulated in recent weeks, investors can take confidence from the fact that there was no major news or trade threats made during the weekend. This story could develop this week, following the Boao Forum which will be held on Tuesday, during which time Chinese President Xi Jinping could make huge market reform announcements.

Tech Companies Up on Monday Morning

Tech is often seen as the strongest investment sector in the modern market, and stock value usually reflects this. Tech was hit hard by trade war fears, but there is some recovery taking place and plenty of optimism in key stocks. Even Facebook, a company which was recently hit with a huge data leak scandal, has managed to make gains over the weekend.

  • Premarket for Apple (NASDAQ: AAPL) was up 1.25% this Monday.
  • Premarket for Microsoft (NASDAQL MSFT) was up 1.09% this Monday.
  • Premarket for NVidia (NASDAQ: NVDA) was up 1.57% this Monday.
  • Premarket for Facebook Inc. (NASDAQ: FB) was up 1.43% this Monday.

These companies are notable because they were all hit by drops in value as the trade war situation escalated. Now that the news has cooled, investors are buying back in.

Manufacturing, another strong performer in the last year, has also had some growth. Caterpillar (NYSE: CAT) and Boeing (NYSE: BA) were both up on premarket figures ahead of Monday opening.

The stock market has been highly volatile in 2018, but it has also been resilient considering all of the turmoil associated with global trade. Volatility is not expected to end yet, but it can at least be seen that there are still opportunities for profitable trading.

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