Stock futures rose more than 1% following a broad rally on the first trading day of October – a sharp turn from September, which brought the worst month since March 2020 for the the Dow Jones Industrial Average and the S&P 500.
Futures tied to the S&P 500 increased 1.44%. Nasdaq 100 futures were up 1.75%. Futures for the Dow Jones Industrial Average were up 372 points, or 1.26%.
Monday brought a respite from slides seen throughout September and the prior quarter. The Dow jumped nearly 2.7%, or about 765 points, to close at 29,490.89. This was its best day since June 24. The S&P 500 advanced about 2.6% to 3,678.43 in its best day since July 27. The Nasdaq Composite increased roughly 2.3% to end at 10,815.43.
Meanwhile, the yield on the 10-year U.S. Treasury note fell to about 3.65%, down from more than 4% at one point last week.
“There was a relief rally,” said Jon Maier, chief investment officer at Global X ETFs. But he also warned against calling on a trend based on one day of trading. “I don’t think one day of relief changes the story.”
Maier said the rally likely came from optimism in the U.S. over the state of foreign markets, as the dollar continued to surge. But within the U.S., he said broader market trends will likely be tied to future decisions from the Federal Reserve as it aims to continue lowering inflation.
Investors will watch for new data Tuesday from the Job Openings and Labor Turnover Survey administered by the Bureau of Labor Statistics.