Nasdaq and Dow futures rise as US-EU 15% tariff deal and potential China truce extension ease trade war fears, boosting market optimism.
The stock futures market recovered on Sunday evening, as Nasdaq futures increased by 0.39% today and Dow Jones futures gained 0.25%. Nasdaq futures led the rebound after Friday’s steep selloff, demonstrating the resilience of stock market futures. Investor sentiment is being influenced by economic uncertainties and the ongoing impact of tariffs on equities, which has resulted in a market recovery.
Stock Futures Market Volatility, Tariffs, and Jobs Data Shape the US Stock Market
Significant recovery following weekly losses
The stock futures market has experienced gains due to the severe weekly declines affecting major indices. The Nasdaq futures experienced their most dismal week since May, while the Dow Jones futures suffered in tandem with the broader market. The S&P 500, Dow, and Nasdaq experienced falls of 2.4%, 2.9%, and 2.2% during the week. Consequently, stock market futures are currently endeavoring to recover.
The selloff on Friday was precipitated by the unexpectedly weak July employment report, which resulted in a significant decrease in the tallies of previous months. This resulted in President Trump’s firing of the commissioner of the Bureau of Labor Statistics, which further exacerbated market uncertainty.
Fed Policy and Tariffs Influence the Stock Futures Market
The market is under pressure from the updated tariffs imposed by Trump on various trading partners, ranging from 10% to 41%. The impact of these tariffs on equities has prompted apprehension regarding the outlook of Nasdaq and Dow Jones’ futures, as well as the potential for increased costs and broader inflationary pressures.
Amrita Sen, the co-founder of Energy Aspects, stated the following:
“Given fairly strong oil prices at around $70, it does give OPEC+ some confidence about market fundamentals.”
The ongoing conflict between Trump and Federal Reserve Chair Jerome Powell continues to be the subject of discussion. The market’s performance may be bolstered by the fact that nearly 90% of trader bets are now on a September rate reduction, following the release of weak jobs data.
Commodities and Earnings Influence the Outlook of the Stock Futures Market
With over 100 S&P 500 companies reporting this week, the stock futures market will be subject to earnings season pressure. The results of Palantir, Eli Lilly, and Disney will impact the Nasdaq and Dow Jones futures.
Commodity fluctuations also influence the sentiment of the stock market futures. Brent crude prices decreased by 0.2% to $69.53 per barrel, while spot gold prices declined by 0.22% to $3,355.37 per ounce, despite their previous gains following the weak employment report.
Stock Trader’s Almanac data indicates that August is historically the Dow’s most unfavorable month and the S&P 500 and Nasdaq’s second-worst months. This seasonal weakness further strains the present market recovery attempt.
Currently, the recovery of the stock futures market is contingent upon implementing tariffs, earnings results, and Federal Reserve policy decisions. The combination of these factors will determine whether the Nasdaq futures ‘ gains and Dow Jones futures’ recovery today can be maintained throughout the challenging August trading period.
