Traders work on the floor of the New York Stock Exchange on April 1, 2024.
Brendan McDermid | Reuters
(Watch CNBC’s live markets special Sunday at 6 p.m. ET. here.)
U.S. stock futures were little changed Sunday as investors faced a host of problems, including the Iranian missile and drone attack on Israel and a spike in stock market volatility that sent the average Dow Jones Industrial had its worst week of the year last week.
Futures contracts tied to the Dow Jones Industrial Average were up 48 points, or 0.13%. S&P 500 futures added 0.14% and Nasdaq-100 futures edged up 0.06%.
Gold futures continued their 2024 rally, jumping another 0.4% late Sunday to exceed $2,384 an ounce. Bullion hit a record high last week and is up 15% this year as investors seek protection from persistent inflation and geopolitical tensions.
The Dow lost 476 points and the S&P 500 recorded its worst day since January on Friday due to lingering inflation concerns and a poor start to the first-quarter earnings season. These losses caused the Dow to fall 2.4% last week, its worst week since March 2023 and its second consecutive week of decline. The S&P 500 slipped 1.5% for its worst week since October 2023. The Nasdaq Composite Index recorded its third consecutive negative week.
Iran launched drones and missiles at Israel on Saturday evening, marking the first direct attack on Israel from Iranian territory. Even though the majority of threats have been intercepted, fears of reprisals remain.
Oil prices, which had risen in recent weeks before the attack on growing tensions in the Middle East, were down slightly on Sunday.
“This remains a dangerous situation, but the risks to oil and markets may be somewhat less than feared on Friday on the eve of the attack,” wrote Krishna Guha, managing director of Evercore ISI and head of the central bank’s global policy and strategy team. in a Sunday note.
Guha added that the remaining “main question” is how Israeli Prime Minister Benjamin Netanyahu will respond to the attack. The Biden administration has made clear that it does not want Israel to retaliate, Guha noted.
“Provided Netanyahu appears willing to follow US advice, there could be an element of relief in markets on Monday. However, our colleagues on the energy team do not expect a significant retracement of oil prices,” Guha added. .
On the earnings side, investors will be watching results from Goldman Sachs and M&T Bank on Monday morning. Other economic data is also expected to be released. Retail sales data are scheduled for Monday, along with business inventory data for February and manufacturing sector figures for March.
Treasury yields jumped for most of last week amid a third consecutive higher-than-expected CPI reading, but rates eased Friday as investors bought bonds. Treasure as a refuge against geopolitical tensions. Prices move inversely to yields.
As JPMorgan Chase beat analysts’ profit estimates in its first-quarter report Friday, investors sent shares down 6% on concerns about what they might generate from loans over the course of the year. year to come. CEO Jamie Dimon also expressed concerns about the “unsettling” global landscape and “persistent inflationary pressures.”
News Source : www.cnbc.com
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