U.S. Stocks Likely To Regain Ground In Early Trading
Following the sell-off seen in the previous session, stocks are likely to move back to the upside in early trading on Tuesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 263 points.
Bargain hunting may contribute to initial strength on Wall Street, as traders pick up stocks at somewhat reduced levels on the heels of recent weakness.
The steep drop seen during trading on Monday dragged the tech-heavy Nasdaq down to its lowest closing level in over two months.
Chipmaker Micron Technology (MU) may help lead a rebound by tech stocks after reporting better than expected fiscal first quarter results and providing upbeat guidance.
Shares of Nike (NKE) and Rite Aid (RAD) are also seeing pre-market strength after the companies reported quarterly results that beat expectations.
U.S. stocks tumbled at the start of the session on Monday and remained firmly negative throughout the day as the rapidly spreading Omicron variant of the coronavirus raised concerns about global economic recovery.
The major averages all ended notably lower. The Dow, which plunged more than 700 points to 34,665.50, ended the day with a loss of 433.28 points or 1.2 percent at 34,932.16. The Nasdaq closed lower by 188.74 points or 1.2 percent at 14,980.94, recovering from the day’s low of 14,860.04, while the S&P 500 settled at 4,568.02, recording a loss of 52.62 points or 1.1 percent.
In overseas trading, stock markets across the Asia-Pacific region moved notably higher during trading on Tuesday. Japan’s Nikkei 225 Index surged by 2.1 percent, while China’s Shanghai Composite Index advanced by 0.9 percent.
The major European markets have also shown strong moves back to the upside on the day. While the U.K.’s FTSE 100 Index has jumped by 1 percent, the French CAC 40 Index and the German DAX Index are both up by 1.1 percent.
In commodities trading, crude oil futures are climbing $1.03 to $69.64 a barrel after plunging $2.11 to $68.61 a barrel on Monday. Meanwhile, after falling $10.30 to $1,794.60 an ounce in the previous session, gold futures are rising $5.50 to $1,800.10 an ounce.
On the currency front, the U.S. dollar is trading at 113.73 yen compared to the 113.61 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1289 compared to yesterday’s $1.1279.
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