After closing lower for five consecutive sessions, stocks may 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 306 percent.
Bargain hunting may contribute to an early rebound on Wall Street, as traders look to pick up stocks at reduced levels following recent weakness.
The Dow and the S&P 500 ended Monday’s trading at their lowest closing levels since late 2020, while the Nasdaq fell to a three-month closing low.
Pullbacks by treasury yields and the value of the U.S. dollar may also inspire some traders to get back into stocks.
Buying interest may remain somewhat subdued, however, as concerns about higher interest rates and the outlook for the global economy continue to weigh on the markets.
On the U.S. economic front, a report released by the Commerce Department showed a modest decrease in new orders for U.S. manufactured durable goods in the month of August.
The Commerce Department said durable goods orders slipped by 0.2 percent in August after edging down by 0.1 percent in July. Economists had expected durable goods orders to decrease by 0.4 percent.
Excluding a steep drop in orders for transportation equipment, durable goods orders inched up by 0.2 percent in August, matching the uptick seen in July as well as economist estimates.
Shortly after the start of trading, the Conference Board is scheduled to release its report on consumer confidence in the month of September. The consumer confidence index is expected to inch up to 104.3 in September after climbing to 103.2 in August.
The Commerce Department is also due to release its report on new home sales in the month of August. Economists expect new home sales to slump by 2.2 percent to an annual rate of 500,000 in August following a 12.6 percent nosedive to an annual rate of 511,000 in July.
Stocks fluctuated early in the session but moved notably lower over the course of the trading day on Monday. The major averages added to the steep losses posted last week, with the Dow and the S&P 500 falling to their lowest closing levels since late 2020.
The major averages all finished the day firmly in negative territory. The Dow tumbled 329.60 points or 1.1 percent to 29,260.81, the Nasdaq slid 65.00 points or 0.6 percent to 10,802.92 and the S&P 500 slumped 38.19 points or 1.0 percent to 3,655.04.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan’s Nikkei 225 Index rose by 0.5 percent, while China’s Shanghai Composite Index surged by 1.4 percent.
The major European markets have also moved back to the upside on the day. While the German DAX Index has jumped by 1.0 percent, the French CAC 40 Index is up by 0.9 percent and the U.K.’s FTSE 100 Index is up by 0.4 percent.
In commodities trading, crude oil futures are climbing $1.33 to $78.04 a barrel after tumbling $2.03 to $76.71 a barrel on Monday. Meanwhile, after slumping $22.20 to $1,633.40 an ounce in the previous session, gold futures are rising $13.30 to $1,646.70 an ounce.
On the currency front, the U.S. dollar is trading at 144.52 yen compared to the 144.75 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $0.9642 compared to yesterday’s $0.9609.
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