Premarket: Apple is green

From the Wall Street Journal’s “U.S. Stock Futures Jump After Chinese Interest-Rate Cut” posted early Friday:

Global stocks and U.S. equity futures rose, recovering some ground after the S&P 500 came close to falling into a bear market and the Chinese central bank cut a key interest rate.

Stocks have come under pressure this week from concerns about global growth. Investors worried about how aggressively the Federal Reserve would respond to the bout of high inflation and Covid-19 lockdowns in China that limited economic activity and snarled supply chains, driving a selloff.

The S&P 500 is on track to close down for the seventh consecutive week and has fallen around 3% so far. It came close to entering bear-market territory in Thursday’s choppy trading, market shorthand for a 20% decline from its last peak.

On Friday, the Chinese central bank unexpectedly cut a key interest rate that acts as a benchmark for mortgages, a move that is predicted to support the country’s housing market. It kept other rates unchanged.

“We have a growth scare at the moment, coming from China and monetary policy biting in the U.S. So this morning, sentiment was helped with China’s action,” said Arun Sai, a multiasset strategist at Pictet Asset Management. “But we still need to build more evidence to convince markets that a soft landing is possible.”

Charts: Yahoo!Finance sees a bearish commodity-channel-index pattern. Max pain stays at $150 with a call mountain at $170 and a put peak at $135.


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