US stocks set to open higher even as concerns over inflation and commodity price spikes persist

Futures contracts for the Dow Jones Industrial Average rose 0.1%, while those for the S&P 500 also rose 0.1% and contracts for the tech-heavy Nasdaq-100 rose 0.2 %

U.S. stocks are expected to open slightly higher on Friday, reflecting lingering concerns about inflationary pressures and commodity price spikes amid the ongoing war in Ukraine and the prospect of higher interest rates in the largest economy in the world.

On Thursday, US President Joe Biden warned that NATO would react if Russia started using chemical weapons in Ukraine. His remarks raised concerns about a further escalation of war and, therefore, the effects of war on growth.

Futures on the Dow Jones Industrial Average rose 0.1%, while those for the S&P 500 also rose 0.1% and contracts for the tech-heavy Nasdaq-100 rose 0.2 %.

“Wild price movements and jaw-dropping margin calls are pushing many investors out of commodity markets, which in turn reduces liquidity and has a spurring effect on price volatility,” Ipek said. Ozkardeskaya, senior analyst at Swissquote Bank.

“Nickel has clearly become the face of this wild volatility, as the price surged 15% on the boundary for the second day in a row yesterday. Rising commodity prices are further bolstering inflation expectations and central bank hawks are weighing on government bonds, but equity traders remain surprisingly optimistic,” she added.

Separately, the EU’s failure to impose an embargo on Russian oil helped to lower oil prices, but benchmark Brent crude was still trading at just over $115 a barrel, Gold – seen as a safe haven amid uncertainty – was around $1,958 an ounce. .

Ozkardeskaya noted that for oil prices: “The long-term outlook remains comfortably optimistic as the combination of tight global supply and the expectation that global oil demand will reach a record high in the second half of the year is expected to lay a floor under the short-term price declines.

U.S. data on Thursday was positive, with the manufacturing and service sectors showing strong growth while weekly jobless claims fell to their lowest level in decades. The latter mirrors remarks by US Federal Reserve Chairman Jerome Powell earlier in the week that the US labor market is strong, underscoring the need for a rapid increase in interest rates in the largest economy. of the world.

A U.S. consumer confidence survey, due out at 11:00 a.m. ET, will be in focus, especially if it continues to point to pessimism, adding to market volatility.

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