Stocks climbed with US equity futures Wednesday amid speculation that the worst of this year’s equity rout may be over, even as concern over the potential for a global downturn sparked by hawkish central bank lingers.
Contracts on the Nasdaq 100 outperformed those on the S&P 500 as Netflix gained 7.5 per cent in premarket trading after it reported better-than-feared earnings late on Tuesday and said it expects to return to subscriber growth before the end of the year. Treasuries rose, pushing the 10-year yield below 3 per cent.
“The fact that companies are showing a certain resilience to the current environment is reassuring market operators who have now started betting on a less aggressive monetary tightening than initially expected,” said Pierre Veyret, a technical analyst at ActivTrades. “Even if we’re not out of the woods yet, more and more traders now tend to believe the worst is behind for equity markets this year.