Dow Futures Rise, Goldman Sachs and BofA Earnings Loom—and What Else Is Happening in the Stock Market Today

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Some of Wall Street’s biggest banks kick off a week filled with company results.

Ed Jones/AFP via Getty Images

Stocks were rising Monday, continuing their momentum from a rally at the end of last week as investors set aside concerns over multidecade high inflation and a cloudy global growth picture.

Futures for the Dow Jones Industrial Average climbed 220 points, or 0.7%, after the index rallied 658 points on Friday to close at 31,288. S&P 500 futures signaled a start 0.9% into the green, with the tech-stock-heavy Nasdaq poised to rise 1.3%.

Overseas, the pan-European Stoxx 600 gained 1.1% and Hong Kong’s Hang Seng Index surged 2.4%.

Stocks are carrying forward their gains from last Friday, which saw both the Dow and S&P 500 notch their best days in almost a month, but still fail to close out the week with gains.

“While the rebound on Friday was a welcome relief, it didn’t change the fact that markets are increasingly pricing the prospect that the global economy is heading for a sharp slowdown, and that the overall trend remains one of selling rebounds,” said Michael Hewson, an analyst at broker CMC Markets. “Today’s [open] looks set to continue this firmer theme.”

Last week was tumultuous for stocks, as red-hot inflation data brought to the fore fears that the Federal Reserve will have to move even more aggressively to tighten monetary policy—which risks spurring a recession. 

Until the Fed’s policy committee meets next week to decide over what is expected to be another supersize interest-rate increase, investors are likely to look to U.S. corporate earnings as catalysts for sentiment. Monday sees earnings from Wall Street giants Goldman Sachs (ticker: GS) and Bank of America (BAC), in addition to International Business Machines (IBM).

“With the Fed now on their [monetary policy committee] blackout period and a lighter U.S. week for data (ex-housing), [second-quarter] U.S. earnings and all things European will be at the forefront of market attention this week with the highlight being the [European Central Bank’s] likely first rate hike since 2011 on Thursday,” said Jim Reid, a strategist at Deutsche Bank.

Write to Jack Denton at jack.denton@dowjones.com