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U.S. stock futures rose Tuesday, continuing a rally from the year’s lows despite the ongoing Russia invasion of Ukraine and an increasingly hawkish Federal Reserve.
What’s happening
-
Futures on the Dow Jones Industrial Average
YM00,
+0.39%
rose 0.4%, or 123 points, to 34559 -
Futures on the S&P 500
ES00,
+0.31%
rose 0.3%, or 14 points, to 4466 -
Futures on the Nasdaq 100
NQ00,
+0.34%
gained 0.3%, or 49 points, to 14419
On Monday, the Dow Jones Industrial Average
DJIA,
dropped 201 points, or 0.6%, to 34553, pressured by a crash of a Boeing
BA,
jet, while the S&P 500
SPX,
finished fractionally lower at 4461 and the Nasdaq Composite
COMP,
slipped 0.4%, or 55 points, to 13838. It came on a day when Federal Reserve Chair Jerome Powell said the central bank could make half-point rate hikes, if necessary, during this tightening cycle.
The S&P 500, which has dropped as much as 12% this year, ended Monday with a 6% decline for all of 2021.
What’s driving markets
Russia intensified air and sea attacks across Ukraine, as President Joe Biden encouraged U.S. companies to harden their cyber defenses against Russia. Separately, the Okta
OKTA,
authentication company said it was investigating images purporting to show a hack of their internal system, though the hacking group is believed to be based in Brazil.
Strategists at Goldman Sachs said markets have rebounded but only commodities and the dollar are above their pre-invasion peak. They weren’t entirely convinced, saying the relief rally is at odds with downside macro scenarios, and that there’s little upside.
“With global central banks maintaining their hawkish stance and focus on inflation, the shorter duration, value pockets have led the rebound contributing to last week’s outperformance of European equities,” said London-based Goldman strategists led by Cecilia Mariotti.
There’s more commentary coming from Federal Reserve officials, including New York Fed President John Williams.
