Stock futures climb as traders try to recover from the S&P 500's losing week: Live updates

Stock futures experienced an upswing on Sunday evening as investors prepared for an important week marked by several central bank meetings. Futures for the S&P 500 increased by 0.4%, while the Dow Jones Industrial Average futures rose by 128 points, or 0.2%. Meanwhile, the Nasdaq-100 futures climbed by 0.6%.

This week, the U.S. Federal Reserve, the European Central Bank, and the Bank of Japan are all set to announce their monetary policy decisions, with the Federal Reserve making its announcement on Wednesday, followed by the ECB on Thursday and the Bank of Japan on Friday.

In Asian markets on Monday, performance was mixed. The broad-based Topix index gained 0.37%, although the Nikkei 225 index saw a decline of 0.2%. South Korea's Kospi dropped by 0.3%, and the smaller Kosdaq index experienced a more significant loss of 1.18%. Australia’s S&P/ASX 200 also saw a decrease, falling by 0.26%.

Oil prices dipped on Monday in Asia, with Brent crude futures falling by 1.31% to $115.19 per barrel, while U.S. West Texas Intermediate crude decreased by 1.5% to $101.83 per barrel. Last Friday, Brent crude had reached its highest price since April, driven by reports suggesting potential military action by the U.S. and Israel against Iran following the midterm elections.

The surge in oil prices, combined with a broader sell-off affecting various market sectors, contributed to significant declines in the major U.S. stock indices on Friday. The Dow Jones Industrial Average fell by more than 650 points, the S&P 500 dropped by 0.5%, and the Nasdaq Composite lost 0.2%. This downturn resulted in consecutive weekly losses for both the S&P 500 and the Nasdaq.

France's financial situation garnered attention as its 10-year bond yield reached 5% last week for the first time since 2002. However, the country received some relief after Moody's decided to uphold its Aa3 credit rating and negative outlook. Concerns had arisen about the potential for a downgrade due to rising borrowing costs in the euro zone's second-largest economy.

Moody's indicated that "a significant and sustained fiscal effort will still be needed beyond the presidential elections of April and May 2027" to strengthen France's public finances and stabilize a debt burden projected to exceed 120% of GDP by 2027. The agency noted that a stable outlook could be reinstated if France's institutions manage to effectively reduce the deficit.

As traders anticipate the Federal Reserve's decision on interest rates, current futures trading indicates a 90% probability that the central bank will maintain rates within the existing target range of 3.75% to 4%. However, analysts at Bank of America predict a possible quarter-point rate hike, describing it as a "heavy lift" for the Fed.

Bank of America economist Claudio Irigoyen remarked in a research note that the upcoming decision will serve as a test of Chair Warsh's commitment to altering the Fed's guidance strategy. He emphasized that if the Fed opts for a rate increase, concerns about excessive tightening may arise among investors. Conversely, if rates are held steady, it could lead to skepticism regarding the Fed's credibility in combating inflation.