As investors dismissed worries over the Middle East violence, futures for Wall Street’s key stock indexes gained on Monday ahead of a busy week of results and interest rate decisions from major central banks, including the Federal Reserve.
as Israeli forces advanced on the Palestinian enclave with a ground assault supported by tanks, prompting more international demands for the protection of people.
The U.S. equities markets, however, were mostly unaffected by the conflicts; in premarket trade, megacap companies like Nvidia, Amazon.com, and Tesla rose by 0.9% to 1.3%.
“While it has been largely expected, the ground offensive in Gaza will still be causing some concern,” stated Susannah Streeter, head of money and markets at Hargreaves Lansdown.
The resiliency of the American economy is once again being emphasised as a positive development rather than as a sign that interest rates may rise.
U.S. equities have been negatively impacted this month by geopolitical worries and an increase in Treasury rates, which has caused the benchmark S&P 500 to fall more than 10% from its intraday high in July.
The yield on the ten-year note broke beyond the 5% barrier earlier this month, and as of Monday, it stood at 4.89%.
The U.S. Treasury is expected to increase the amount of auctions for bills, notes, and bonds in the fourth quarter when it unveils its financing plans this week to pay a rising budget deficit, which will further inflame bond market concerns. An increase in rates later on might put more strain on equities.
The CME Group’s FedWatch tool indicates that at the conclusion of its policy meeting on November 1, the Fed is largely likely to leave interest rates steady.
Nonetheless, certain economic sectors have shown resilience, raising worries that the central bank may indicate a readiness to maintain existing rates for a longer period of time than first thought.
One of the most recent measures of the strength of the biggest economy in the world will be the non-farm payrolls data for October, which is coming on Friday.
Later in the week, the Bank of England and the Bank of Japan would also make their decisions about interest rates public.
increased 2.1% after surpassing forecasts for sales and earnings in the third quarter.
Later in the week, a number of significant Wall Street firms would report, including Apple, Pfizer, and Eli Lilly.
77.6% of the 245 S&P 500 businesses that have released earnings thus far have exceeded earnings projections, according to LSEG statistics.
E-mini Dow was up 188 points, or 0.58%, S&P 500 e-mini up 25 points, or 0.6%, and Nasdaq 100 e-mini up 101 points, or 0.71%, at 7:00 a.m. ET.