US stock-index futures pointed to a moderate recovery when Wall Street opens on Friday, reeling in some of the losses suffered in what has been the market’s worst week since March.
Nasdaq 100 futures rebounded 1.5 per cent to 7,133 about two hours before the opening bell. The technology-heavy Nasdaq Composite has shed 6 per cent in the week to date, heading for its worst weekly sell-off since early March.
S&P 500 futures climbed 0.9 per cent to 2,771. As of Thursday’s close, the gauge was down 5.4 per cent for the week.
That was despite a slight sell-off on Friday in Treasury markets, where higher yields have been regarded by some analysts as a catalyst for the turbulence in stocks. The yield on the benchmark 10-year US Treasury was up 4.2 basis points to 3.1726 per cent.
Speaking on CNBC, the US television network, Treasury secretary Steven Mnuchin said US fundamentals remain “strong” despite what he sees as a “normal” market correction.
A sell-off that began on Wall Street last Friday accelerated midweek as investors in Asia and Europe took fright amid fears of rising interest rates. However, markets calmed on Friday. The benchmark Stoxx 600, which tracks Europe’s largest listed groups, rose 0.6 per cent on Friday to 361.9. In Frankfurt, the Xetra Dax index rose 0.5 per cent.
Investors in the US were expected to parse through the first round of third-quarter corporate reports. JPMorgan Chase, the biggest US lender by assets, posted stronger than expected earnings before the bell. Citigroup and Wells Fargo are due to report later in the morning.
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