Stock futures rose sharply on Tuesday after a losing day, as investors prepared to rebalance their portfolios with the end of the quarter.
Futures on the Dow Jones Industrial Average rose 139 points, or 0.44%. S&P 500 futures were up 0.4% and Nasdaq 100 futures were up 0.37%.
The overnight action was followed by minor losses on Wall Street as the rally to comeback stalled. The blue-chip Dow fell nearly 60 points, while the broader benchmark, the S&P 500, fell 0.3% and the tech-heavy Nasdaq Composite lost 0.7%. The key averages rallied last week, posting their first positive week since May.
Chris Larkin said, “Market bulls who have repeatedly pulled the rug out of their bottoms this year may be suspicious of a rally, as the many highs in 2022 have quickly given way to new lows and it is time Couldn’t be any different.” Director of Trading at E-Trade.
Investors will monitor more data on Tuesday, including June consumer confidence and April home prices, to assess the health of the economy. Fears of a recession have risen recently as the Federal Reserve tries to counter rising inflation with aggressive rate hikes.
Nike shares rose in after-market trading after the sportswear company topped Wall Street’s earnings and sales expectations for the fiscal fourth quarter Despite the Kovid lockdown in China and the tough environment for consumers in America
Many big banks increased dividend In response to successfully clearing this year’s Federal Reserve stress tests, including Bank of America, Morgan Stanley and Goldman Sachs. However, JPMorgan and Citigroup said rising capital needs forced them to keep their dividends unchanged.
Despite last week’s jump, the S&P 500 is down nearly 14% in the second quarter, on track to post its worst quarter since the first quarter of 2020 at the depth of the pandemic.
Mark Hackett, head of investment research at Nationwide, said: “The bounce from bear market lows is a welcome change, although slow economic growth and a lack of dedication among investors cast many doubts on the sustainability of the recovery.”