Stock futures hike overnight trading on Sunday after the volatile week ended. Dow Jones Industrial Average futures soared at 80 points. There was less movement in Nasdaq 100 futures. S&P 500 futures witnessed a rise of 0.2%.
China’s real-estate industry leader, Evergrande, has become a huge concern for the Federal Reserve. Individual investors and organisations see this concern as a primary reason for the wild volatility in the last week. Beijing’s crackdown on trading platforms for cryptocurrencies has also been the major reason for the roller-coaster week.
The debt crisis on Evergrande results in signals from the federal reserve on the monetary policy stimulus. An investment research spokesperson said that the equity markets are oscillating between bullish and bearish trends. It shows that a buy-the-dip mindset still drives the investors to prepare for the market’s recovery.
S&P 500 could see negative results soon for the first time since January. The Nasdaq is down 1.4%, and the Dow Jones was down 1.6% in September. In addition, the broad equity unmanaged group of securities is around 2% off from the first week of September.
Lawmakers try to mitigate the government shutdown and the economic agenda from the severe damage to fix the situation in Washington. Investors have new hopes for the quick recovery of the market. The $1 trillion bipartisan infrastructure bill may pass this week, but voting on the legislation may be postponed from the conventional hours on Monday.
Experts said lawmakers have to find a way to solve the October debt ceiling before the U.S. commits its first default on the debt. In addition, Congress have colossal pressure to combat shutdown by passing a new budget by the end of September.