Investors may be looking at a positive start to the week, with stocks picking up where Friday’s rally left off.
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As of 5:00 am ET, Dow futures were higher by 297 points or 1.24 percent to 24,463. S&P 500 futures pointed 31 points higher or 1.20 percent to 2,650 while Nasdaq futures rose by 72 points or 1.12 percent to 6,490.
The Dow Jones industrial average closed on Friday with a gain of 330 points led by technology stocks. When it was all tallied, the Dow, S&P 500 and Nasdaq each lost about 5%, in what were the biggest weekly declines for the indexes since 2016.
“How this plays out over the coming days depends on whether the rebound we saw on Friday can translate into some form of base for a continuation of the uptrend that has been in place for the last nine years, “ says Michael Hewson, Chief Market Analyst at CMC Markets. “This may well depend on whether we see further increases in bond yields, or a rise in interest rate expectations from other central banks around the world.”
In Europe, London’s FTSE, France’s CAC and Germany’s DAX all opened with a gain of 1 percent.
Overnight in Asia, China’s Shanghai Composite index was up 23.71 points or 0.76 percent at 3,153.56. It lost nearly 10 percent last week.
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Japan’s Nikkei was closed for a holiday.
U.S. 10-year Treasury yields hit new 4-year high at 2.902 percent.
Oil rose 2 percent on Monday, recovering some of last week’s steep losses.
Infrastructure stocks may be in the spotlight as President Trump unveils his plan to rebuild roads, bridges and highways. The White House’s budget plan calls for $200 billion in federal funds to spur $1.5 trillion in infrastructure investments.
Investors will get a fresh read on the U.S. economy with a host of reports during the upcoming week, including inflation reads from the latest consumer and producer prices.
