US markets are kicking off the holiday-shortened week in the green.
Dow futures are up 119 points. S&P futures are up 16 points. Nasdaq futures are up 36 points.
There’s no major US economic data schedule for release on Monday.
Today’s trading action follows a couple of rough days in the market. Stocks tumbled on Thursday and Friday. Analysts are attributing the volatility to the Federal Reserve’s decision last Wednesday to hike interest rates for the first time since June 2006, ending the extremely stimulative “zero-interest-rate policy (ZIRP),” which was introduced in December 2008.
It’s worth noting that stocks surged last Wednesday following the Fed’s decision.
“On Thursday US markets gave a second thought to the change of policy many (including us) had longed for, and the selling that had led into the FOMC meeting re-engaged, forcing stocks to globally give back some of their recent gains through Friday’s close in New York,” Oppenheimer’s John Stoltzfus said.
The S&P 500 closed at 2,005 on Friday, which means the index is down just under 3% for the year.
Stoltzfus, however, will remind you that the year isn’t over yet.
“We do not believe that the selling will preclude some kind of a Santa Claus rally if only to the end of the year,” he said on Monday. “Our 2015 year-end target for the S&P 500, which we initiated in November of 2014, remains at 2,311 while being placed under review in consideration of what the potential for a closing year-end rally is in light of seasonal historical precedence and in context of the limited number of trading days left in the year.”
There are 7.5 trading days left in 2015.