Dow Jones, Nasdaq futures rebound after brutal sell-off; Here's why this week is important

Futures on Wall Street have started off the post-weekend trade on a positive note after Friday's brutal sell-off, which wiped out more than $1 trillion in market capitalisation. Daylight Savings took effect from Sunday, meaning the stock markets will now open for trade at 8 PM IST, instead of the usual 7 PM time.

Futures on the Dow Jones are trading with gains of over 165 points, while those on the S&P 500 are up 30 points. Nasdaq futures are trading with gains of close to 200 points on Sunday evening local time. The Dow Jones was the only one among the indices that reported a monthly gain in October, while the S&P 500 and Nasdaq sold off.

Crude oil prices have also eased this morning as hopes of a diplomatic solution to the US-Iran war are still floating. Irani negotiators met with Qatari mediators for the third day running in Doha. The fall though is not significant, as on the flip side, reports also indicate that Iran's supreme leader Mojtaba Khamanei ordered the armed forces to be prepared for any attack.

Why Is This Week Important For Wall Street

The midterm elections is the biggest trigger for Wall Street this week as polls are suggesting a democrat sweep of both the Senate and the House. However, US President Donald Trump has refused to accept any adverse outcome of the election, stating that he would veto the same.

Apart from the midterm elections, earnings and macro data continues to be reported during the course of the week. Apple, Palantir, AMD, Amgen, Qualcomm, ARM Holdings, Uber, Pfizer, are some of the important results that will be reported along Monday and Wednesday, with Apple reporting numbers after Monday's market closing hours. Berkshire Hathaway will be reporting its results on Friday.

On the macro data front, the start of the month means reports from the manufacturing and services PMI, JOLTS' job openings, and most importantly, the October jobs report will also be disclosed this week on Friday.

With the Fed policy now done, the blackout period for officials has now been lifted, and three important Fed officials will speaking during the course of the week as well.

Morgan Stanley Says Buy The Dip

Wall Street veteran and Morgan Stanley's Mike Wilson told Bloomberg in an interview that while there are many factors like the elections, AI-related stress and liquidity concerns that could pull the S&P 500 down to 7,100 levels, once the stress clears out, he would expect the index to move back to 8,000 levels and he continues to remain bullish on the market.