US stock futures gained Friday morning following indices’ worst daily decline since July, the Wall Street Journal reported. The Dow, Nasdaq and S&P 500 all increased by 0.2%.
Friday, September 26, 2014
Thursday saw losses of 1.5% on the Dow and 1.6% on the S&P 500 due to apprehension over the global economy and Russian relations. But strong US economic data positively influenced investor sentiment. While the gains in stock futures could be a good sign for Friday’s markets, it is not a surefire predictor of index movement.
National economic growth
The Commerce Department reported the US economy expanded in the second quarter at an annualized rate of 4.6%, according to Bloomberg. The growth is the highest pace since 2011 and topped analyst predictions for the second quarter of 4.2%. More data is set for release later on Friday.
While the US economy advances, the Federal Reserve will consider when to hike interest rates from their near-zero levels. Fed chair Janet Yellen expressed caution at a September 17 press conference. “The labor market has yet to fully recover. There are still too many people who want jobs but can’t find them.”
Optimism after a strange Thursday
Many traders expressed positivity following Thursday’s large and unexpected decline, MarketWatch reported. The drop could have easily been a flash in the pan as several stocks are poised for gains Friday.
“The 2012 uptrend remains intact, and with this in mind, a weekly close below 1,945 [on the S&P 500] could see a big pickup in shorting activity,” Chris Weston of IG told Market Watch. “It was a funny old session, and price action today will therefore be key.”
Nike is up 10.2% in the premarket and could provide a significant boost for the stock exchange during the day’s trading. Apple is also poised for recovery following a PR gaffe and ensuing taunts that drove down Thursday shares.
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