Stock futures grew on Wednesday following a three-day downturn, as indexes distanced from their record peaks. This 0.4% rise saw futures-associated indexes gain 152 points, spurred on by several multinational corporations announcing higher-than-expected earnings. Top performers included blue-chip shares, which helped lift the Dow Jones Industrial Average.
Investors are now intently monitoring forthcoming economic data, corporate earnings plus news from the Federal Reserve. However, strategists warn that market volatility may persist due to the uncertainty surrounding the Covid-19 pandemic and potential changes in monetary policy. Meanwhile, key indexes have witnessed a minor drop, primarily due to challenges faced in the tech sector.
Still, many indexes reached peak closing levels last week, and experts suggest the intermittent drops reflect the usual fluctuations and adjustments in the market. Robert Schein, Chief Investment Officer at Blanke Schein Wealth Management, has warned of market metrics forcing a return to reality. However, he praised the market’s robustness, attributing its strength to good liquidity.
The S&P 500, Nasdaq, and Dow showed growth this month and within the quarter.
Resilience amidst market volatility and changes
Meanwhile, despite geopolitical tensions, the foreign exchange market also performed well with a notable rise in the Euro, Pound Sterling, and Japanese Yen. This positive outlook is backed by consistent growth in numerous sectors and projected end-of-month figures.
Traders are eagerly anticipating the speech by Federal Reserve Governor Christopher Waller. Investors will also be focusing on data pertaining to GDP, unemployment claims, and consumer sentiment, even as the markets remain closed on Good Friday. Details on personal income, consumer spending, and personal consumption expenditures will also be diligently scrutinized.
In other news, Merck’s shares rose by 4% in pre-market trading following the FDA’s approval for an adult pulmonary arterial hypertension medication. This milestone is expected to positively influence the company’s future operations. Merck can now confidently move forward with marketing and distribution initiatives for the newly approved drug, paving the way for potential increased revenue streams.
However, challenges may arise with the commercialization of the new drug, including possible competition from similar drugs in the market. Despite this, Merck is set to start a new chapter in pulmonary treatment, aiming to improve the quality of life for patients living with pulmonary arterial hypertension.
