Dow futures rose almost 500 points Tuesday, as global stocks rose with US traders set to return from a holiday.
Stocks plummeted last week as investors grappled with fears interest rate hikes will spark a recession.
Oil prices moved higher, while cryptocurrencies showed signs of recovery after another brutal weekend.
US stock futures climbed Tuesday, as global equities rose, signaling a recovery after last week’s brutal sell-off as investors’ mood brightened somewhat.
In the US, markets look set to start the week on a more positive note, after being closed Monday for the Juneteenth holiday. Futures on the Dow Jones Industrial Average were up 491 points, or 1.64% higher, while S&P 500 futures rose 1.81%. Those on the tech-heavy Nasdaq 100 added 1.84%.
All three major US indexes tumbled over 5% last week as investors grappled with fears the Federal Reserve’s efforts to tamp down soaring inflation could spark a recession, after the central bank hiked interest rates by 75 basis points for the first time since 1994.
“It looks like we’ll see a ‘sympathy bounce’ for risk assets today,” City Index market analyst Matt Simpson said. “With US traders returning to desks, it seems like a good opportunity for a small countertrend rally before the next leg lower for global equities.”
Global stocks moved higher Tuesday, with the MSCI World Index up 0.54%.
But on Monday, European Central Bank president Christine Lagarde warned the Eurozone faces a “severe” risk of correction in its financial and housing markets.
“While the correction in asset prices has so far been orderly, the risk of a further and possibly abrupt fall in asset prices remains severe,” she said.
In Asia, equities finished their trading session in the green, with Japan’s Nikkei 225 climbing 1.84%. The Hang Seng jumped 1.87%, although the Shanghai Composite slipped 0.26% as Beijing continued to battle a mild Covid-19 flare-up.
Here’s how the other major asset classes are performing Tuesday morning:
The fixed income market’s pains continued, with 10-year US Treasury yields up 32 basis points to 3.27%.
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