After a tumultuous week on Wall Street, markets are showing signs of recovery as investors digest the latest retail sales figures and earnings reports.
Futures for the S&P 500 and the Dow Jones Industrial Average are up 0.6% before the bell, indicating a positive start to the trading day. Despite tensions in the Middle East following Iran’s first-ever military assault on Israel, oil prices have fallen as demand from China slows and supply outpaces demand.
Defense contractors are seeing gains, with Lockheed Martin leading the way with a 1.8% increase. Retail sales data showed a strong 0.7% gain, and investors are eagerly awaiting financial results from Bank of America, United Airlines, and Netflix.
Apple shares dipped slightly after reports showed the iPhone falling behind Samsung in phone deliveries in the first quarter. Concerns about weakening iPhone sales in China are weighing on investors’ minds.
In Europe, markets are mostly up, with Germany’s DAX and France’s CAC 40 rising 1%. In Asia, Japan’s Nikkei 225 slipped 0.7%, while Hong Kong’s Hang Seng dropped 0.6%.
Currency trading sees the U.S. dollar rising to 153.89 Japanese yen, hitting a 34-year high as investors seek safe havens in times of uncertainty. Australia’s S&P/ASX 200 and South Korea’s Kospi are down, while Taiwan’s Taiex and India’s Sensex are also lower.
Friday saw a mixed start to the earnings reporting season, with the S&P 500, Dow Jones Industrial Average, and Nasdaq composite all closing lower. Traders are adjusting their forecasts for Federal Reserve interest rate cuts, with expectations now at just two cuts for the year, down from initial forecasts of at least six.
