After moving sharply lower over the three previous sessions, stocks are likely to regain ground in early trading on Tuesday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 1.0 percent.
The markets may benefit from bargain hunting, as some traders look to pick up stocks at reduced levels following the recent sell-off.
With the steep drop on Monday, the tech-heavy Nasdaq tumbled to its lowest closing level since November 2020, while the Dow and the S&P 500 also hit one-year closing lows.
Buying interest may remain somewhat subdued, however, as traders remain wary about inflation, higher interest rates and the outlook for the global economy.
Traders may also be reluctant to make more significant moves ahead of the release of key inflation data in the coming days.
The Labor Department is due to release its report on consumer price inflation on Wednesday, with the annual rate of price growth expected to slow to 8.1 percent in April from 8.5 percent in March.
The latest snapshot of inflation could impact expectations regarding how aggressively the Federal Reserve plans to raise interest rates.
Following the sharp pullback to close out the previous week, stocks showed another substantial move to the downside during trading on Monday.
The major averages saw continued weakness going into the close, ending the session near their worst levels of the day. The Dow slumped 653.67 points or 2 percent to 32,245.70, the Nasdaq plummeted 521.41 points or 4.3 percent to 11,623.25 and the S&P 500 plunged 132.10 points or 3.2 percent to 3,991.24.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Tuesday, although China’s Shanghai Composite Index bucked the downtrend and jumped by 1.1 percent. Japan’s Nikkei 225 Index slid by 0.6 percent, while Hong Kong’s Hang Seng Index sank by 1.8 percent.
Meanwhile, the major European markets have moved back to the upside following recent weakness. While the U.K.’s FTSE 100 Index has climbed by 0.7 percent, the French CAC 40 Index and the German DAX Index are up by 1.5 percent and 1.6 percent, respectively.
In commodities trading, crude oil futures are falling $0.54 to $102.55 a barrel after plummeting $6.68 to $103.09 a barrel on Monday. Meanwhile, after slumping $24.20 to $1,858.60 an ounce in the previous session, gold futures are inching up $0.70 to $1,859.30 an ounce.
On the currency front, the U.S. dollar is trading at 130.01 yen compared to the 130.29 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0557 compared to yesterday’s $1.0561.
Business News
U.S. Stocks May Regain Ground Following Recent Sell-Off
2022-05-10 12:52:11
