“Market Snapshot: U.S. stock futures rise in holiday trade as Shanghai sets reopening plans”
U.S. stock futures rose on Monday in light holiday volume, helped by plans from the world’s number-two economy to lift some restrictions as it fights COVID more aggressively than the rest of the world.
While U.S. stock exchanges are closed in observance of Memorial Day, electronic futures trading continues.
Futures on the Dow Jones Industrial Average
rose 103 points, or 0.3%, to 33261
Futures on the S&P 500
gained 21 points, or 0.5%, to 4177
Futures on the Nasdaq 100
increased 104 points, or 0.8%, to 12782
On Friday, the Dow Jones Industrial Average
rose 576 points, or 1.76%, to 33213, the S&P 500
increased 100 points, or 2.47%, to 4158, and the Nasdaq Composite
gained 390 points, or 3.33%, to 12131.
The S&P 500’s 7% rally last week was the strongest since Nov. 2020, though the index is still down 13% from its record high.
What’s driving markets
Shanghai over the weekend said it would lift restrictions on businesses and offer tax rebates, and Beijing reopened some public transportation, signs of a loosening of the zero-COVID policies that have limited output in China.
“The easing is mainly an issue for domestic demand—Chinese exports continued to grow during the restrictions. However, some international companies produce in China for Chinese consumption, so the easing has relevance for some global equities,” said Paul Donovan, chief economist at UBS Global Wealth Management.
European-listed luxury producers that sell into China, including LVMH Moet Hennessy
advanced. The Shanghai Composite
rose 0.6%, and the Hang Seng
rallied over 2% in Hong Kong.
There’s a big slate of U.S. economic data on tap this week, including Wednesday’s release of the Institute for Supply Management manufacturing index, and Friday’s release of nonfarm payrolls.
Federal Reserve Gov. Christopher Waller said on Monday that he backs “several meetings” worth of half-point rate hikes until inflation comes down closer to the 2% target.
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