U.S. index futures implied a positive Monday open for stocks stateside after last week’s volatile trade.
Dow Jones industrial average futures were up 151 points and S&P 500 futures traded 12.9 points higher during Asian morning trade. Nasdaq 100 futures gained 25 points.
Earlier, as of 8:44 p.m. ET on Sunday, the implied open for the Dow was 144.10 points to the upside.
The moves came after U.S. indexes rebounded on Friday, although the Dow still had its worst week in two years. Both the Dow and S&P 500 declined 5.2 percent on the week on investor concerns over rising interest rates.
“While we cannot rule out further weakness (clearly it has gone deeper than we anticipated), we think the magnitude of the correction has largely run its course with the SPX testing its rising 200-day moving average and many metrics showing short-term washout conditions,” Jonathan Krinsky, chief market technician at MKM Partners, said in a Sunday note.
“The bigger question becomes will we see the ‘v-shaped’ recovery that has become so common over recent years, or will it be more of a process like we saw following 2010’s ‘Flash Crash,'” Krinsky added.
Larry McDonald, head of U.S. macro strategies at ACG Analytics and editor of The Bear Traps Report, said this was a “trade-able bounce,” but noted that a “true regime change is here.
In an email, McDonald said “the FOMC will have significant challenges providing the same accommodative policy and pulling the same liquidity levers in the new political landscape” following the passage of a major spending bill signed into law by President Donald Trump last Friday.
