US stock futures rose on Monday as traders tried to add to the strong gains seen last week.
Dow Jones Industrial Average futures rose 249 points, or 0.8%. S&P 500 and Nasdaq 100 futures gained 0.7% and 0.3% respectively.
The 10-year Treasury yield continued its retreat from a 14-year high on Monday and last fell to 4.17%. At one point on Friday, it topped 4.33% before the Wall Street Journal reported that some Federal Reserve officials were growing increasingly concerned about an excessive rise in interest rates.
The moves come after another volatile week for stocks as the third-quarter earnings season heats up. The major averages posted their biggest weekly gains since June, with the Dow Jones rising 4.9%. The S&P 500 and Nasdaq rose 4.7% and 5.2% respectively.
Some of those gains came on Friday, when the Dow gained more than 700 points, while the S&P 500 and Nasdaq each rose about 2.3%.
Investors will be watching the earnings of tech giants such as Apple, Alphabet, Amazon and Microsoft this week. Wall Street will also be watching more inflation data, with October’s manufacturing and services purchasing managers’ indices coming Monday.
“The S&P 500 was up +4.7% on the week, with Energy/Materials and Technology outperforming and defensive sectors underperforming in essentially a broad trend reversal since early August” , Raymond James analyst Tavis McCourt said in a Sunday note. “It’s unclear if the rally is sustainable, or to what extent, but the reasons appear to be BPA revisions, which appear to be better than feared so far (much like 2T), as well than the expectation that a loaded Fed cycle ahead could end in early 2023.”
So far, earnings reports have had mixed results for stocks. On Friday, bank stocks Goldman Sachs and JPMorgan Chase gained more than 4% after the earnings release. But not all results were strong – Snap lost 28% after reporting a shortfall.