After experiencing the worst trading week in nearly a year-and-a-half, Wall Street markets are showing signs of a rebound as they prepare to open on Monday. Futures for the S&P 500 and the Dow Jones Industrial Average have seen a 0.7% increase in premarket trading.
Boeing shares surged by 4.1% following the aerospace company's successful negotiation of a new contract with its largest union, averting a potential strike that could have disrupted aircraft production. The new contract promises a 25% pay raise for the 33,000 workers represented by the International Association of Machinists and Aerospace Workers over the next four years.
On the other hand, discount retailer Big Lots has filed for Chapter 11 bankruptcy protection and intends to sell its assets and ongoing business operations to private equity firm Nexus Capital Management. Despite this, Big Lots shares saw a more than 9% increase after the announcement of the postponement of its second-quarter earnings release.
Apple is set to unveil its highly-anticipated iPhone 16, which is tailored for artificial intelligence, with expected enhancements to its virtual assistant, Siri. Meanwhile, the Federal Reserve is expected to announce its first interest rate cut in over four years at its upcoming policy meeting, following a series of rate hikes initiated in March 2022 to combat high inflation.
In Europe, major indices like France's CAC 40, Germany's DAX, and Britain's FTSE 100 all showed positive movements. However, Japan's Nikkei 225 index experienced a decline, closing at 36,215.75, despite the country's GDP growth of 2.9% in the second quarter falling below expectations.
Chinese markets also faced losses due to disappointing inflation data, with the consumer price index growing by 0.6% year-on-year in August and the producer price index dropping by 1.8% compared to the previous year. Energy trading saw an increase in benchmark U.S. crude and Brent crude prices.
On Friday, the S&P 500 and the Dow Jones Industrial Average both saw declines, with tech companies like Broadcom and Nvidia leading the market lower. The Nasdaq composite also dropped by 2.6% amid concerns about overvaluation in the artificial intelligence sector.
