U.S. Index Futures Bounce as Week of Stock Woes Draws to a Close

• February 09 2018
• Gabriella Lovas

U.S. stock-index futures advanced, indicating a possible rebound for stocks at the end of a week that has seen key benchmarks enter a correction.

U.S. stock-index futures advanced, indicating a possible rebound for stocks at the end of a week that has seen key benchmarks enter a correction.

Contracts on the S&P 500 Index expiring in March rose 0.7 percent as of 10:45 a.m. in London, while those on the Dow Jones Industrial Average were up 0.5 percent. Nasdaq 100 futures climbed 0.7 percent. A selloff that accelerated late Thursday sent the S&P 500 down 3.8 percent, taking its slide since a Jan. 26 record past 10 percent -- the accepted definition of a correction. The Dow is also 10 percent below last month’s peak.

The Cboe Volatility Index dropped 5.8 percent, trimming its biggest weekly surge since August 2015. The gauge known as VIX more than doubled on Monday, roiling the market for products betting on low volatility.

Read more on how the U.S. stock market correction finally happened

“The roller-coaster ride is definitely not over yet,” Andrea Tueni, head of sales trading at Saxo Banque France, said by phone. “This could be another false start today. Every time the market has tried to bounce back, we’ve seen ‘selling into the rebound’ and not ‘buying into the dip’, which is a worrying signal.”

Read more: Citi Private Bank Sees VIX Doubling, Says ‘So What’ on Vol ETPs

POLITICS:

• The Senate passed a two-year budget agreement early Friday that would suspend the debt ceiling for a year, as lawmakers sought to end a partial government shutdown that began at midnight after Congress missed a funding deadline.

ECONOMY:

• Friday: Dec. Final Wholesale Inventories; Dec. Wholesale Trade Sales

EARNINGS:

• Moody’s Corp., PG&E Corp., and Ventas, Inc. are among companies that report earnings