Stock futures rose on Tuesday as the Dow Jones Industrial Average and the S&P 500 tried to recover from their lowest closes in nearly two years.
S&P 500 futures rose 1.1%, and Nasdaq 100 futures rose 1.3%. The Dow Jones Industrial Average advanced 263 points, or 0.9%.
The British pound edged higher after falling to a record low against the dollar earlier in the week. Sterling traded 1% higher at $1.087 per dollar after hitting an all-time high of $1.0382.
Treasury yields also came off their highs, adding to sentiment. The benchmark 10-year yield fell nearly 5 basis points to 3.823%.
Moving into the future comes later Stocks lose for five consecutive days, the S&P 500 ends at its lowest level since 2020. The Dow fell more than 300 points on Monday, putting it in a bear market after falling more than 20% from its record high. The 30-share average also posted its lowest close since late 2020.
Technical indicators sell-off is historic. According to Bespoke Investment Group, the 10-day forward decline line for the S&P 500 is at its lowest level, meaning market breadth is at its worst in at least 32 years.
The latest round of selling appears to have several catalysts, including an aggressive Federal Reserve and rising interest rates. On Monday, the The British pound has fallen to a record low Against the dollar, that worried investors on both sides of the Atlantic.
“Typically, US investors don’t worry too much about these kinds of things, especially lately. So this tells me that this fear is gripping investors more than ever before. That’s going to lead to a capitulation moment where we’re really at the bottom,” said Max Gokhman, CIO of AlphaTrAI.
On Tuesday, investors will receive a slew of new economic data, including September consumer confidence, August durable goods orders and July home prices. Wall Street is increasingly concerned that the central bank’s six-month-long inflation scramble could push the economy into recession.