Traders on the floor of the NYSE, October 21, 2022.
U.S. stock futures rose on Sunday evening after all three major averages hit their best week since June, ending Friday.
Futures linked to the Dow Jones industrial average rose 222 points, or 0.71%. S&P 500 futures and Nasdaq 100 futures rose 0.88% and 1.00%, respectively.
The moves come after another volatile week for stocks as the third-quarter earnings season heats up. On Friday, the Dow gained more than 748 points, or 2.47%. The S&P 500 and Nasdaq Composite rose 2.37% and 2.31%, respectively. This added to gains from earlier in the week. The S&P 500 and Dow rose 4.7% and 4.9%, respectively, while the Nasdaq rose 5.2%.
So far, earnings reports have had mixed results for stocks. On Friday, banking stocks Goldman Sachs and JPMorgan Chase gained more than 4% after the results report. But not all results were positive — Snap lost 28% after reporting a revenue miss.
Stocks rose on Friday even as bond yields rose — with the 10-year U.S. Treasury reaching its highest level since 2008 amid mixed corporate earnings. Bond yield is inversely proportional to price.
“The equity market is trying to make a bottom to move into the last phase of the bear market,” David Donabedian, chief investment officer at CIBC Private Wealth US, said in a note on Friday. “It feels like a two-way market right now. There’s a tug-of-war between the skeptics and those who think it’s time to own the stock.”
Tech has more big earnings reports in the coming week, including from tech giants like Apple, letters, Amazon And Microsoft. Wall Street will also watch for inflation data – on Monday, the October manufacturing and services purchasing managers’ indices will be released.