Stock futures jump as traders try to build on Monday’s rally
U.S. stock markets index futures surged Tuesday as Wall Street aimed to build on a sharp rally seen in the previous session. Futures for the Dow Jones Industrial Average were up 335 points, or 1.2%. S&P 500 futures increased 1.5%, and Nasdaq 100 futures were up 1.8%. Monday brought a respite from slides seen throughout September and the prior quarter. The Dow jumped nearly 2.7%, or about 765 points. It was its best day since June 24. The S&P 500 advanced about 2.6% in its best day since July 27. The Nasdaq Composite increased roughly 2.3%. Meanwhile, the yield on the 10-year U.S. Treasury note extended its decline and was trading at about 3.583%, down from more than 4% at one point last week. “After falling more than 9% in September and extending its year-to-date decline to nearly 25% as of Friday’s close, we think the S&P 500 was looking oversold,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “In addition, some of last week’s selling pressure may have been driven by quarter-end rebalancing, which has now ended.” “With sentiment toward equities already very weak, periodic rebounds are to be expected,” he added. “But markets are likely to stay volatile in the near term, driven primarily by expectations around inflation and policy rates.” Investors will watch for new data Tuesday from the Job Openings and Labor Turnover Survey administered by the Bureau of Labor Statistics. Asia-Pacific shares traded higher on Tuesday after stocks on Wall Street rallied overnight. The Nikkei 225 in Japan rose 2.96% to close at 26,992.21, marking the biggest daily gains since March 23. The Topix index gained 3.21% to close at 1,906.89. South Korea’s Kospi advanced 2.5% to close at 2,209.38. Markets in mainland China and Hong Kong were closed for a holiday. Oil prices edged up on Tuesday as expectations that OPEC+ may agree to a large cut in crude output when it meets on Wednesday outweighed concerns about the global economy. Brent crude futures rose 78 cents, or 0.9%, to $89.64 per barrel after gaining more than 4% in the previous session. U.S. crude futures rose by 56 cents, or 0.7%, to $84.19 a barrel. The benchmark gained more than 5% in the previous session, its largest daily gain since May. Gold extended gains on Tuesday to firm above the key $1,700 per ounce level on a retreat in the dollar and U.S. Treasury yields as investors expected the Federal Reserve to tone down its pace of monetary tightening. Spot gold was up 0.12% at $1,701.80 per ounce, having touched its highest since Sept. 13 at $1,710.49 earlier in the session. U.S. gold futures rose 0.51% to $1,710.60.