(Reuters) – U.S. stock index futures inched up on Tuesday following this year’s biggest one-day drop for Wall Street’s main indexes in the previous session, ahead of jobs data later in the day.
At 05:34 a.m. ET, Dow E-minis were up 134 points, or 0.32%, S&P 500 E-minis were up 23 points, or 0.41% and Nasdaq 100 E-minis were up 105.75 points, or 0.54%.
Futures tracking the domestically focused Russell 2000 index rose 1%.
Megacap stocks recovered from Monday’s sharp declines.
Nvidia added 1.6%, while Meta and Amazon.com edged up 0.7% and 0.4%, respectively, before the bell. Tesla added 4.7% after the stock fell 15.4% in the previous session.
JPMorgan Chase and Bank of America were marginally higher.
Monday’s stock market selloff reflected what bonds and currencies have been pointing at for weeks, that U.S. growth is going to slow down.
The selloff wiped out $4 trillion from the S&P 500’s peak last month.
President Donald Trump’s tariff policies against major U.S. trading partners have whipsawed global markets recently and damaged consumer and business sentiment. The CBOE market volatility index closed at its highest level since August.
The S&P 500 logged its biggest one-day fall since December 18 and has dropped 8.6% below its record closing high. The tech-loaded Nasdaq recorded its biggest single-day percentage drop since September 2022, having confirmed a 10% correction late last week.
Still, stock market valuations remain significantly above historic averages, according to LSEG Datastream.
Adding to the gloom, Citi was the latest brokerage to cut its recommendation for U.S. stocks to “neutral” from “overweight”.
Focus will be on the Labor Department’s Job Openings and Labor Turnover Survey, which is due later in the day. A closely watched inflation report is expected later in the week.
Interest rate futures point to the U.S. Federal Reserve leaving borrowing costs unchanged at its meeting next week, but they also have penciled in that the central bank could lower borrowing costs by at least 75 basis points by December on expectations of slowing growth.
Also on the radar will be voting on a funding bill at Capitol Hill to avert a partial federal government shutdown.
Delta Air Lines slid 11.5% after the carrier slashed its first-quarter profit estimates by half as CEO Ed Bastian blamed heightened U.S. economic uncertainty.
Peers United Airlines and American Airlines dropped 7.8% and 6.8%, respectively.
Oracle dropped 1.8% after the cloud company missed quarterly revenue estimates.
U.S.-listed shares of Chinese stocks Xpeng and Alibaba rose 9.7% and 4.2%, respectively. Citi upgraded Chinese shares to “overweight”.
(Reporting by Johann M Cherian in Bengaluru; Editing by Shounak Dasgupta)
Comments