Wall futures are moving positively – ‘Green’ closing for the week is chasing the market

Wall Street stock futures rose on Friday, in the middle of a rare upward week after a difficult first half in 2022.

The futures of the Dow Jones index increased by 222 points or 0.7%. Futures for the S&P 500 were up 0.8% higher, while futures for the Nasdaq 100 were up 0.8%.

The positive moves in futures come at a time when the stock market seems to have found some nuggets of stability this week, at least in the short term. After an afternoon rally on Thursday, the S&P 500 is up 3.3% for the week, while the Nasdaq Composite is up 4% and the Dow is up 2.6%.

“It’s a relief,” Allianz Mohamed El-Erian told CNBC today. “It is a relief after a difficult week, a difficult six years, a difficult year, and we have a relief rally, and that is really welcome.”

However, the chief economist of the company pointed out worrying signs in the bond market, which invokes a “higher risk of recession”, as the US Federal Reserve shifts to a more aggressive stance against inflation.

“The market is saying ‘oops, be careful’, because the economy is weakening not only in the US, but all over the world. So these are two different narratives right now in the stock market and the bond market. And the key issue is that “Once again, it is the bond market that drives the Fed, not the Fed that drives the market,” El-Erian continued.

Volatility on Wall Street could be higher today as the FTSE Russell completes its annual index adjustment by changing the composition of its trillions of dollars. Update days are usually accompanied by large trading volumes.

The economic data will be a key focus in the future, as investors try to determine if the US economy is entering a period of recession. Data on new home sales are expected to be announced at 5 p.m. Greek time and the final report of the University of Michigan on the June Consumer Confidence Index will follow later in the day.

Measuring the consumer climate could be particularly important for investors, as US Federal Reserve Chairman Jerome Powell said the sudden drop in the preliminary measure was one of the reasons the central bank raised its key interest rate by three-quarters of a percentage point earlier this month.

“The debate over the recession remains at the heart of Wall Street, and that means that any stock market recovery is likely to be short-lived,” said Oanda senior market analyst Ed Moya in a note. “Wall Street will soon have no answers to questions about when inflation will peak, how soon we will see a recession and how high the Fed will raise interest rates.”