What the stock market is poised to do this morning

BMO Capital Markets chief strategist Brian Belski on investors who are worried about today’s markets.

U.S. stock futures rose Monday, signaling stocks may start the week on a firm footing after a bout of volatility driven by swings in technology shares.

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Futures tied to the S&P 500 climbed 1%, while contracts linked to the technology-laden Nasdaq Composite gained 1.3%. The Nasdaq last week suffered its biggest one-week decline since the market crisis of March.


Monday’s advance would extend a spell of outsize moves in both directions for global markets. Stocks have been buffeted by uncertainty about the U.S. presidential election, a slowing recovery in the world economy from the shock of Covid-19, and gyrations in tech shares that had driven markets higher since the spring.

“We’re shifting into an environment of lower returns and higher volatility and this is not inconsistent with that,” said James McCormick, global head of desk strategy at NatWest Markets.

“This isn’t a message that we’re going back to February, March markets,” Mr. McCormick added, referring to the historic declines that took place when countries locked down to control Covid-19. “But I think the upside is going be a bit capped here until we get through some of these events and risks.”

In this Jan. 3, 2020 file photo, the Wall St. street sign is framed by American flags flying outside the New York Stock Exchange in New York. (AP Photo/Mary Altaffer, File)

The Cboe Volatility Index, which estimates how far traders expect the S&P 500 to swing over the next month, ticked down to its lowest level since Sept. 3.

Investor sentiment was boosted by the resumption of clinical trials of <a

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