Stock futures, oil prices rebound from recent losses

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Equity futures rose on Monday morning, leveling off after last week’s volatility as investors anticipated a key Federal Reserve event later this week.

S&P 500 futures rose more than 0.3%, driven by gains in energy stocks as oil prices rose. West Texas Intermediate Crude Oil futures (CL = F) topped $ 64 a barrel, and Brent crude (BZ = F) jumped above $ 67 a barrel after suffering its longest streak of losses since early 2018 last week.

Dow Jones contracts were expected to open up more than 150 points, or 0.4%, as shares of Chevron (CVX) and Boeing (BA) outperformed. Shares of pharmaceutical company Pfizer (PFE) rose nearly 4% after the announcement of the acquisition of anti-cancer drug maker Trillium Therapeutics (TRIL) for $ 2.3 billion, adding to the positive sentiment following separate reports that the U.S. Food and Drug Administration is set to fully approve the top-selling COVID-19 vaccine this week after months of emergency cleared use.

Stocks came under pressure late last week after the minutes of the July Federal Open Market Committee meeting reported that “most” Fed participants believed the economy would have gone downhill. recovered enough to justify the start of a reduction in asset purchases by the end of this year. The S&P 500 posted its first weekly decline in three weeks, while closing Friday’s session higher. Central bank officials are expected to hold their annual Jackson Hole symposium this week starting Thursday, which could serve as a forum for more remarks on the size and scope of the Fed’s Fed cuts plans.

A host of new benefits and economic data have also been released. Overall, corporate earnings have been exceptionally strong, with nearly 90% of S&P 500 companies beating consensus earnings per share estimates, according to FactSet. This came even as concerns about the spread of the Delta variant resurfaced and supply chain issues and material and labor shortages remained.

“I think we’re definitely not going to get the kind of fiscal stimulus we’ve had over the last year and a half, or the monetary stimulus. So I think overall the market is handling all of this remarkably well. “Ed Yardeni, president and chief investment officer of Yardeni Research, told Yahoo Finance. “The perception is that the Federal Reserve is now seriously heading for a cut because the economy is doing well. this probably keeps the bond yield low and weakens oil. “

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Monday at 7:23 a.m.ET: Stock futures indicate higher open:

Here’s where the markets were trading before the opening bell:

S&P 500 Futures Contracts (ES = F): +14.5 points (+ 0.33%) to 4,451.50
Dow Futures (YM = F): +144.00 points (+ 0.41%) at 35,202.00
Nasdaq Futures (NQ = F): +43.75 points (+ 0.29%) to 15,130.50
Raw (CL = F): + $ 1.75 (+ 2.82%) to $ 63.89 per barrel
Gold (CG = F): + $ 8.80 (+ 0.49%) to $ 1,792.80 per ounce
10-year cash flow (^ TNX): +1.2 bps for a yield of 1.272%

Traders work in the trading floor of the New York Stock Exchange in New York, United States on August 19, 2021. The S&P 500 Index closed at 4,405.80 points, up 5.53 points, or 0.13%. The Dow Jones Industrial Average closed at 34,894.12 points, down 66.57 points, or 0.19%. The Nasdaq Composite Index closed at 14,541.79 points, up 15.88 points, or 0.11%. (Photo by Wang Ying / Xinhua via Getty Images)

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck