Following the recovery rally seen in the previous session, stocks are likely to move back to the downside in early trading on Friday. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.7 percent.
Traders may look to cash in on yesterday’s strong gains, which largely reflected a substantial rebound by technology stocks.
Lingering concerns about the economic outlook are also likely to weigh on Wall Street amid worries further interest rate hikes will lead to a recession in the New Year.
Stocks sometimes benefit from window-dressing toward the end of the year, but traders may see that as a waste of time given the substantial weakness seen in 2022.
Going into the final trading day of the year, the Nasdaq is down by 33.0 percent for 2022, while the S&P 500 is down by 19.2 percent and the Dow is down by 8.6 percent.
Just after the start of trading, MNI Indicators is scheduled to release its report on Chicago-area business activity in the month of December.
The Chicago business barometer is expected to rise to 41.2 in December from 37.2 in November, although a reading below 50 would still indicate a contraction.
Stocks moved sharply higher during trading on Thursday, regaining ground following the weakness seen to start the holiday-shortened week. The major averages all showed strong moves to the upside, with the Nasdaq leading the way higher.
The major averages moved roughly sideways going into the close, holding on to strong gains. The Nasdaq spiked 264.80 points or 2.6 percent to 10,478.09, the S&P 500 surged 66.06 points or 1.8 percent to 3,849.28 and the Dow jumped 345.09 points or 1.1 percent to 33,220.80.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan’s Nikkei 225 Index closed just above the unchanged line, while China’s Shanghai Composite Index rose by 0.5 percent.
Meanwhile, the major European markets have moved to the downside on the day. While the German DAX Index has slumped by 1.1 percent, the French CAC 40 Index is down by 0.9 percent and the U.K.’s FTSE 100 Index is down by 0.8 percent.
In commodities trading, crude oil futures are slipping $0.39 to $78.01 a barrel after falling $0.56 to $78.40 a barrel on Thursday. Meanwhile, after climbing $10.20 to $1,826 an ounce in the previous session, gold futures are inching up $0.20 to $1,826.20 an ounce.
On the currency front, the U.S. dollar is trading at 132.01 yen versus the 133.03 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0646 compared to yesterday’s $1.0661.
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