Following last Friday's sell-off, stocks are expected to rebound in early trading on Monday. Major index futures indicate a higher market open, with S&P 500 futures advancing by 0.6%.
Investors might be looking to acquire stocks at discounted prices after last week's sharp decline, which pushed the Nasdaq to its lowest point in nearly a month.
Further contributing to the positive sentiment is optimism that the Federal Reserve will reduce interest rates later this month, despite ongoing concerns about the U.S. economic outlook.
However, overall trading activity might remain subdued as traders anticipate key reports on consumer and producer price inflation later this week.
These reports are likely to indicate a deceleration in the annual rate of consumer price growth but an acceleration in the annual rate of producer price growth.
While it is widely expected that the Fed will begin to lower interest rates later this month, this data could influence expectations regarding the pace of these rate cuts.
Currently, the CME Group's FedWatch Tool indicates a 75% chance of a 25 basis point rate cut and a 25% chance of a 50 basis point cut.
Reacting negatively to the monthly jobs report, stocks plummeted during Friday's trading, with significant losses across the major indices, notably the tech-heavy Nasdaq, which reached its lowest closing level in almost a month.
The major indices ended Friday near their session lows. The Nasdaq plunged 436.83 points or 2.6% to 16,690.83, the S&P 500 dropped 94.99 points or 1.7% to 5,408.42, and the Dow fell 410.34 points or 1.0% to 40,345.41.
For the shortened holiday week, the Nasdaq suffered a 5.8% decline, the S&P 500 dropped by 4.3%, and the Dow decreased by 2.9%.
Internationally, stock markets in the Asia-Pacific region mostly fell on Friday. Japan's Nikkei 225 Index decreased by 0.5%, and China's Shanghai Composite Index dropped by 1.1%.
Conversely, European markets showed gains for the day. The U.K.'s FTSE 100 Index rose by 0.6%, the French CAC 40 Index increased by 0.5%, and the German DAX Index climbed by 0.4%.
In commodities trading, crude oil futures are up $0.67 to $68.34 per barrel, recovering from a $1.48 drop to $67.67 per barrel last Friday. Meanwhile, gold futures are gaining $7.50 to $2,532.10 per ounce, rebounding from an $18.50 drop to $2,524.60 per ounce in the previous session.
In the currency market, the U.S. dollar is trading at 143.17 yen, up from 142.30 yen at the previous close in New York. Against the euro, the dollar is trading at $1.1047, compared to $1.1004 last Friday.
