The resilience of the market was in full display on Monday after last week’s “historical comeback” by the market. The major index futures traded higher, albeit by a modest magnitude. The yen weakened amid a stock market holiday in Japan and this should serve to keep the carry trade unwinding fears in check. That said, geopolitical tensions perked up after Iran-backed Lebanese paramilitary group Hezbollah launched rocket attacks on Israel amid an Iranian threat to take on the Jewish nation.
Domestically, traders may look to exercise restraint ahead of two inflation reports, due Tuesday and Wednesday, and key retail earnings reports from companies such as Home Depot, Inc. (NYSE:HD) and Walmart, Inc. (NYSE:WMT). The CBOE Volatility Index, widely called as VIX, rose slightly but held below the 21 level.
Futures
Performance (+/-)
Nasdaq 100
+0.25%
S&P 500
+0.17%
Dow
+0.06%
R2K
-0.43%
In premarket trading on Monday, the SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.20% to $534.07, and the Invesco QQQ ETF (NASDAQ:QQQ) rose 0.29% to $451.70, according to Benzinga Pro data.
Cues From Last Week:
The major U.S. averages extended their weekly losses, despite a fairly-tale comeback from Monday’s plunge, they ended marginally lower. The S&P 500 Index, the broader market gauge, gyrated between a low and high of 5,119.26 and 5.358.67, respectively, during the week, underlining the volatility the market experienced in the week ended Aug. 9.
The VIX spiked to a high of 65.73 – a level not seen since March 2020 in the ...
