U.S. stock futures fell on Monday as the market caught its breath folowing the dramatic rally of recent sessions.
What’s driving markets Perhaps a touch of profit taking was inevitable. U.S. equity futures were a bit softer on Monday as bulls took stock after a remarkable surge at the end of last week. Jim Reid, strategist at Deutsche Bank, noted that a batch of factors had helped spark the latest recovery. “Impressive levels of European gas storage due to the weather, very short positioning in US equities, mid-terms being out the way, positive seasonals, less event risk in the Russian/Ukraine war, and now softer U.S. inflation than expected are all helping,” said Reid in a morning bulletin.
“The market gapped up cleanly and ferociously through that 3900 level. Now its next test is looming: the 200-day moving average and that downtrend line tracing the previous sequence of highs,” said Callum Thomas at ChartStorm.