Futures Pointing To Roughly Flat Open On Wall Street

The major U.S. index futures are currently pointing to a roughly flat open on Monday, with stocks likely to show a lack of direction after rebounding last Friday but still posting steep weekly losses.

Uncertainty about the near-term outlook for the markets may keep some traders on the sidelines following recent weakness, which saw the S&P 500 plunge into correction territory last Thursday.

Traders may also be reluctant to make significant moves ahead of the Federal Reserve’s monetary policy announcement on Wednesday.

While the Fed is almost universally expected to leave interest rates unchanged, traders will look to the accompanying statement as well as officials’ latest projections for clues about the outlook for rates.

The Fed may also address President Donald Trump’s new tariffs amid concerns about the economic impact of the trade policies.

Following the sell-off seen over the course of Thursday’s session, stocks showed a substantial move back to the upside during trading on Friday. The major averages all moved sharply higher, with the tech-heavy Nasdaq posting a standout gain.

The major averages reached new highs for the session going into the close of trading. The Nasdaq soared 451.07 points or 2.6 percent to 17,754.09, the S&P 500 surged 117.42 points or 2.1 percent to 5,638.94 and the Dow jumped 674.62 points or 1.7 percent to 41,488.19.

Despite the significant rebound on the day, the major averages still posted steep losses for the week. The Dow plunged by 3.1 percent, while the Nasdaq and the S&P 500 tumbled by 2.4 percent and 2.3 percent, respectively.

The rally on Wall Street came as some traders looked to pick up stocks at reduced levels following the steep drop seen on Thursday, which dragged the Nasdaq and the S&P 500 down to their lowest closing levels in six months.

The nosedive also pulled the S&P 500 into correction territory, as the index plunged by more than 10 percent from February’s record highs.

Positive sentiment may also have been generated in reaction to news the U.S. is likely to avoid a government shutdown after Senate Minority Leader Chuck Schumer, D-NY, said he would vote to advance a Republican spending bill funding the government through September.

While Democrats oppose the bill, Schumer argued allowing President Donald Trump to “take even much more power via a government shutdown is a far worse option.”

Meanwhile, traders largely shrugged off a report from the University of Michigan showing a substantial deterioration in consumer sentiment and a surge by inflation expectations in the month of March.

Steel stocks turned in some of the market’s best performances on the day, resulting in a 4.0 percent spike by the NYSE Arca Steel Index.

Substantial strength was also visible among computer hardware stocks, with the NYSE Arca Computer Hardware Index soaring by 3.5 percent after ending the previous session at a nearly four-month closing low.

Brokerage stocks also saw significant strength, as reflected by the 3.5 percent surge by the NYSE Arca Securities Broker/Dealer Index.

Semiconductor, software and banking stocks also showed notable moves to the upside amid a broad based rally on Wall Street.

Commodity, Currency Markets

Crude oil futures are jumping $0.83 to $68.01 a barrel after climbing $0.63 to $67.18 barrel last Friday. Meanwhile, after rising $9.80 to $3,001.10 an ounce in the previous session, gold futures are edging down $1.60 to $2,999.50 an ounce.

On the currency front, the U.S. dollar is trading at 148.84 yen versus the 148.64 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.0888 compared to last Friday’s $1.0879.

Asia

Asian stocks advanced on Monday after U.S. Treasury Secretary Scott Bessent said he is “not worried” about the recent market downturn and China announced plans featuring measures to boost wages and stabilize stock and real estate markets.

The U.S. dollar hovered close to a five-month low against its major peers as U.S. President Donald Trump reinforced his trade policy stance, saying there will be no exceptions to U.S. steel and aluminum tariffs.

Gold edged up slightly ahead of this week’s highly anticipated monetary policy announcements by major central banks, including the Federal Reserve, the Bank of Japan and the Bank of England. Crude oil prices extended gains following the U.S. military strikes on Iran-backed Houthi militants.

China’s Shanghai Composite Index edged up by 0.2 percent to 3,426.13 before a briefing by officials on consumption plans.

Xinhua reported authorities will provide details on policies to stabilize the stock and real estate markets, lift wages and boost the nation’s birth rate.

Hong Kong’s Hang Seng Index ended up 0.8 percent at 24,145.57 after China’s industrial output and retail sales figures topped expectations.

However, unemployment rose and housing prices continued to fall in most major cities, muddying Beijing’s drive to boost flagging consumption in the world’s second-largest economy.

Japanese markets rose sharply, with gains seen across the board following a surge in U.S. stocks at the end of last week.

The Nikkei 225 Index jumped 0.9 percent to 37,396.52, while the broader Topix Index settled 1.2 percent higher at 2,748.12. Chip-related stocks climbed, with Advantest and Tokyo Electron rising 2-3 percent.

Mitsubishi Heavy Industries soared 12.2 percent, Kawasaki Heavy Industries surged 6 percent and IHI Corp added 9.7 percent on expectations that Japan may beef up its defense spending in the future.

Seoul stocks rallied, with the Kospi finishing up 1.8 percent at 2,610.69 as tech shares gained on solid foreign buying. Market heavyweight Samsung Electronics soared 5.3 percent.

Australian markets advanced as China’s efforts to boost consumption lifted mining stocks. Financials also surged to snap a nine-day losing streak.

The benchmark S&P/ASX 200 Index rose 0.8 percent to 7,854.10, while the broader All Ordinaries Index closed up 0.9 percent at 8,082.10.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index fell 0.8 percent to 12,166.14 after a survey showed activity in the country’s services sector fell back into contraction territory in February.

Europe

European stocks are modestly higher on Monday ahead of this week’s upcoming parliamentary vote on Germany’s debt reform deal and the interest rate meetings of three central banks – the Federal Reserve, the Bank of England and the Bank of Japan.

While the French CAC 40 Index is up by 0.4 percent, the German DAX Index and the U.K.’s FTSE 100 Index are both up by 0.2 percent.

Phoenix Group shares have surged. The British insurer reported a better-than-expected rise in full-year adjusted operating profit and total cash.

Nordex SE has also rallied on receiving an order from a wind energy project developer for the delivery and installation of 16 N163/5.X turbines.

Meanwhile, AstraZeneca has dipped after it agreed to acquire Belgian biotechnology firm EsoBiotec for up to $1 billion.

QinetiQ Group shares have slumped. The defense- technology firm has lowered its 2025 revenue target, citing ongoing delays in contract awards.

Marshalls has also moved to the downside as revenue dipped 8 percent for the year ended December 31, 2024 from the prior year.

U.S. Economic News

After reporting a notable decrease by U.S. retail sales in the previous month, the Commerce Department released a report on Monday showing a modest rebound by retail sales in the month of February.

The Commerce Department said retail sales rose by 0.2 percent in February after tumbling by a revised 1.2 percent in January.

Economists had expected retail sales to climb by 0.7 percent compared to the 0.9 percent slump originally reported for the previous month.

Excluding a decrease in sales by motor vehicle and parts dealers, retail sales increased by 0.3 percent in February after falling by 0.6 percent in January. Ex-auto sales were expected to rise by 0.5 percent.

The Federal Reserve Bank of New York released a separate report on Monday showing regional manufacturing activity dropped significantly in the month of March.

The New York Fed said its general business conditions index plunged to a negative 20.0 in March after jumping to a positive 5.7 in February, with a negative reading indicating contraction. Economists had expected the index to fall to a negative 1.9.

Looking ahead, the report said optimism about the outlook waned considerably for a second consecutive month, as the index for future business activity slumped to 12.7 in March after tumbling to 22.2 in February.

At 10 am ET, the Commerce Department is scheduled to release its report on business inventories in the month of January. Business inventories are expected to rise by 0.3 percent in January after dipping by 0.2 percent in December.

The National Association of Home Builders is also due to release its report on homebuilder confidence in the month of March at 10 am ET. The housing market index is expected to inch up to 43 in March after slumping to 42 in February.