U.S. stock index futures moved higher on Monday, with technology shares leading the advance, as lower oil prices gave markets some room after a weak week for artificial intelligence trades. Attention is now shifting to several near-term catalysts that could shape sentiment, including October manufacturing data, Apple earnings and the U.S. midterm elections. Strategists cited improving market breadth, though they stopped short of calling the path clear. Jefferies said the recent weakness in mega-cap technology stocks had supported its view that leadership was broadening and capital was rotating, but Friday’s sell-off also raised questions about the broader market outlook. Morgan Stanley’s Mike Wilson said the correction that began in June had entered its final stage, while warning that more risk-clearing events could still trigger another leg down and create opportunities for investors to add exposure.
U.S. stock index futures rose on Monday, led by technology shares, while falling oil prices offered markets some relief after artificial intelligence trades went through a weak week.
Investors are now focused on a set of potential market catalysts this week, including October manufacturing data, Apple Inc. earnings and the U.S. midterm elections.
Strategists point to better breadth, but risks remain
Daniel Kirsche, head of technical analysis and strategy at Jefferies International, wrote in a client note on Monday: “Weakness in large-cap technology stocks has supported our view that the market’s advance is broadening and that capital rotation is taking place, but Friday’s sell-off also raised some questions for us about the broader market outlook. We had previously expected a recovery by late in the fourth quarter, driven by improving market breadth, with technology stocks eventually catching up again.”
Mike Wilson, Morgan Stanley’s chief U.S. equity strategist, said the market correction that started in June has entered its “final stage,” and that market breadth is improving.
He also said the market could still face several potential “risk-clearing events,” which could trigger another decline and create chances for investors to add to positions.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
