Markets Poised For Recovery After Thursday Losses

Markets Poised For Recovery After Thursday Losses

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%.  

Markets Poised For Recovery After Thursday Losses
Markets Poised For Recovery After Thursday Losses

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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