Stock futures ease back after strong run as investors eye earnings, ECB meeting

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Stocks are poised for a weaker session. Tesla stocks are poised to open higher following results.

U.S. stock futures eased back after a strong run that was underpinned by improving risk appetite amid a mostly well-received earnings season

How are stock-index futures trading On Wednesday, the Dow Jones Industrial Average DJIA rose 48 points, or 0.15%, to 31875, the S&P 500 SPX increased 0.5%, to 3960, and the Nasdaq Composite COMP gained 1.5% to 11898. The Russell 2000 index RUT has gained 89.53 points or 5.15% over the last two trading days, its largest two-session percentage gain since January 7, 2021.

Still, the rest of the market is likely to gain succour from Tesla CEO Elon Musk’s comments that supply chain problems, which have been a particular issue for automakers, are ameliorating. The International Monetary Fund had calculated that if the energy conduit was shut for a prolonged period it would push Germany into a sharp recession in 2023.

The development comes as the European Central Bank is expected on Thursday to raise interest rates for the first time in more than 10-years as it tackles inflation of 8.6% in the eurozone. Tighter monetary policy may put further pressure on bonds of the region’s highly indebted nations. The improved mood of late is particularly evident in signs of resurgent demand for some of the more speculative stocks that got badly hit over the past year or so.

 

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