• S&P 500 futures climbed almost 0.7%, Nasdaq 100 futures increased roughly 0.5%.
• The rise of the Stoxx Europe 600 index was led by banks and energy firms.
•  Due to a US holiday, there was no cash trading in Treasury futures.

US index futures and European equities staged a modest rally on Monday as investors pondered whether last week’s selloff was sufficient to price in concerns about increasing rates and slowing GDP.

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After the worst week for the underlying index since the beginning of the pandemic, S&P 500 futures climbed almost 0.7%. Nasdaq 100 futures increased roughly 0.5 percent. A dollar gauge edged lower. Due to a US holiday, there was no cash trading in Treasury futures.

The rise of the Stoxx Europe 600 index was led by banks and energy firms. Due to a decline in raw-material prices, basic resources underperformed. The Swiss engineering firm ABB Ltd.’s decision to postpone the listing of its electric-car-charging company, citing turbulent market conditions, demonstrates the market volatility.

After President Emmanuel Macron lost his absolute majority in parliament, putting his reform agenda in jeopardy, the benchmark for French equities underperformed. In a series of losses reminiscent of the 1970s, UK bonds declined as the nation confronts soaring inflation, labor strikes, and an increased likelihood of a recession.

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As investors seek an entry point into equity markets roiled by mounting price pressures and fears that aggressive monetary tightening would push major economies into recession, volatility measures remain elevated. As inflation moderates in the second quarter, JPMorgan strategists predict that pressure on equities will lessen, while others, including Morgan Stanley, warn that further losses may be forthcoming.