U.S. stock futures edged higher on Monday, Oct. 26, as traders positioned for a busy week of central-bank decisions and digested last week’s sharp declines in equity markets.
Futures, oil and what moved markets
S&P 500 futures were up 0.25%, Dow Jones Industrial Average futures gained 155 points (about 0.31%) and Nasdaq-100 futures rose 0.29% in early trading, reflecting modest buying after Friday’s broad sell-off.
Energy prices drifted lower in Asia. Brent crude traded at $114.52 a barrel and U.S. West Texas Intermediate at $101.03, down roughly 2.2% for each benchmark from recent highs.
- Major central banks — the Federal Reserve, the European Central Bank and the Bank of Japan — will announce policy decisions on Wednesday, Thursday and Friday, respectively.
- Markets were reacting to a risk-off move late last week that left many indexes with declines to close the period.
- Higher oil prices and geopolitical concerns were cited as key drivers of the late-week sell-off.
Recent market backdrop
Equity markets suffered a sharp slide on Friday. The Dow fell by more than 650 points, the S&P 500 lost 0.5% and the Nasdaq Composite dropped about 0.2%. That stretch pushed the S&P 500 and Nasdaq to consecutive weekly losses.
The move in bond markets and euro-area sovereign debt also drew attention. France’s 10-year bond yield earlier touched 5% — a level not seen since 2002 — before Moody’s held the country’s credit rating at Aa3 with a negative outlook, providing some relief to investors concerned about a sovereign downgrade.
| Instrument | Move (early Mon.) |
|---|---|
| S&P 500 futures | +0.25% |
| Dow futures | +155 points (+0.31%) |
| Nasdaq-100 futures | +0.29% |
| Brent crude | $114.52/barrel |
| WTI crude | $101.03/barrel |
Traders will look to central-bank guidance for clues about the next moves in interest rates, which in turn influence mortgage costs, credit-card rates and broader consumer finance conditions. With oil prices elevated and geopolitical tensions weighing on sentiment, market participants were cautious heading into the week.
