U.S. stock futures rose, signaling gains for major indexes at the start of August as investors cheer strong earnings growth.
Futures tied to the S&P 500 added 0.5% Monday. The gauge of large-cap U.S. stocks on Friday closed out a sixth consecutive monthly advance, though share prices have wobbled on occasion in recent weeks.
Contracts for the technology-focused Nasdaq-100 index also climbed 0.5% Monday. Futures for the Dow Jones Industrial Average advanced 0.3%.
Investors are upbeat that the economic expansion will boost corporate profits and enable stocks to keep rising, albeit at a slower pace. Some are cautious that the highly contagious Delta strain of coronavirus, a prolonged spell of inflation and China’s efforts to rein in tech firms could lead to bouts of volatility.
“There are a few good reasons why the economy will continue to grow at above normal rates,” said Edward Smith, co-chief investment officer at U.K. investment firm Rathbone Investment Management. Consumers are spending freely, companies plan to invest in their businesses and firms are restocking inventories, he said.