By Devik Jain
(Reuters) – Wall Street futures rose on Monday as financials and energy stocks rebounded after hawkish comments from the Federal Reserve last week led the blue-chip Dow and the benchmark S&P 500 to their biggest weekly fall in months.
Shares of banks including JPMorgan Chase & Co, Citigroup Inc, Goldman Sachs Group Inc and Bank of America, which tend to perform better when interest rates are high, rose between 0.4% and 0.7% in premarket trading.
The group crashed to a two-month low last week as investors booked profits following comments from a Federal Reserve official who expected interest rate increases in the next year to contain inflation.
Fears of rising interest rates have dictated moves on Wall Street in the past few weeks, with the S&P 500 scaling record highs in June following previous comments from the Fed that shrugged off the jump in inflation as transitory.
Several Fed officials have speaking duties this week, including Chair Jerome Powell, who testifies before Congress on Tuesday.
The deluge of speeches could cause volatility as some officials might push back against the hawkish market interpretation of the Fed’s expectations.
At 6:36 a.m. ET, Dow e-minis were up 192 points, or 0.58%, S&P 500 e-minis were up 18 points, or 0.43%, and Nasdaq 100 e-minis were up 62.25 points, or 0.44%.
Exxon Mobil, Chevron Corp, Schlumberger NV and Occidental Petroleum rose between 0.9% and 1.3%. The energy index lost nearly 3% on Friday.
Crypto stocks including miners Riot Blockchain, Marathon Patent Group and crypto exchange Coinbase Global dropped between 3.0% and 7.7% on China’s expanding crackdown on bitcoin mining.
(Reporting by Devik Jain and Medha Singh in Bengaluru; Editing by Maju Samuel)
