Stock Futures, Bitcoin Leap After S&P 500’s Worst Week In Two Years

US stock futures rose, offering investors a reprieve from a recent piece of whip trading that had plunged stocks and cryptocurrencies

Futures for the S&P 500 gained 1.8% on Tuesday, while those for the Dow Jones Industrial Average gained 1.7%. Contracts for the Nasdaq-100 were up 1.9%. The US stock market was closed on Mondays for the federal holiday of June.

Bitcoin rose along with other cryptocurrencies and continued to recoup recent losses after that a bruised weekend† Bitcoin recently traded at about $21,173, up 3.6% from Monday’s ET value at 5 p.m., and 20% higher from a recent low of $17,601.58 hit Saturday, according to CoinDesk data. .

Investor interest in riskier assets on Tuesday follows a tumultuous week in markets, fueled by the Federal Reserve’s approval of a 0.75 percentage point rate hike. the largest since 1994. That has caused investors to rush to market riskier assets amid growing fears that central bankers will plunge the US economy into recession. the benchmark S&P 500 ended the week at 5.8% lower, the biggest one-week drop in more than two years.

Government leaders and officials have tried in recent days to calm an increasingly nervous country that an economic slowdown is not guaranteed as central bankers work to tame decades of high inflation. President Biden said Monday he spoke with Lawrence Summers, a former Treasury Secretary, and reiterated that he… does not see a recession as inevitable† Federal Reserve Bank of St. Louis President James Bullard also said the economy appears on track for: more expansion this year

Still, many market watchers are bracing for a downturn. In a note Monday, a team of

Goldman Sachs

economists raised their outlook for a US recession, citing concerns that the Fed will feel compelled to react strongly to inflation data even as economic activity slows. The team now sees a 30% chance of going into recession in the coming year, compared to 15% earlier, and a 25% chance of going into recession in the second year if avoided in the first year.

Investors and analysts say they expect more pain in the markets, although some are still willing to jump in and buy shares at a discount after a sell-off that has plunged the S&P 500 by 23% this year. Many pointed to Tuesday’s recovery as a setback to last week’s slump.

“This still feels like a dead end,” said Viraj Patel, global macro strategist at Vanda Research, referring to a term used to describe a short-term market rally. He said investors’ willingness last week to dump stocks from winning sectors this year, including energy and utilities stocks, could signal that this year’s decline has entered a later stage. Still, he said, he believes the drawdown “still has legs to go.”

Tuesday’s bullish mood coincided with a sell-off in US Treasuries, pushing yields on 10-year US Treasuries higher. The return on the benchmark was 3.273%, up from 3.238% on Friday. Yields and bond prices move in opposite directions.

In New York premarket trading, gains were spread across many sectors, with technology stocks, travel companies and banks trading higher. Cruise companies

Royal Caribbean Group



each climbed more than 3%, while

American Airlines Group

climbed 3.3%, boosted by expectations for what is expected to be a busy travel season.

Megacap tech companies also climbed for the opening bell with

add 1.9% and


add 1.8%.


up 3.3%.

Other safe-haven assets retreated Tuesday on improved investor sentiment. The WSJ Dollar Index, which measures the greenback against a basket of 16 currencies, fell 0.2%. The gold price fell 0.2% to $1,837.70 per troy ounce.

Traders worked on the floor of the New York Stock Exchange on Thursday.


Spencer Platt/Getty Images

Oil prices rose in commodities. Brent oil, the international benchmark, rose for the second day, climbing 1.4% to $115.76 a barrel. Last week, oil prices fell on concerns that a potential recession would weigh on energy demand.

Abroad, the pan-continental Stoxx Europe 600 was up 1%. In Asia, trade was mixed. Hong Kong’s Hang Seng rose 1.9% and Japan’s Nikkei 225 gained 1.8%, while China’s Shanghai Composite lost 0.3%.

Write to Caitlin McCabe at

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