U.S. Stocks May Extend Yesterday's Rebound In Early Trading

Stocks are likely to move to the upside in early trading on Wednesday, extending the rebound seen in the previous session. The major index futures are currently pointing to a sharply higher open for t...

RTT Staff Writer•Wednesday, August 7, 2024•2 min read

Stocks are likely to move to the upside in early trading on Wednesday, extending the rebound seen in the previous session. The major index futures are currently pointing to a sharply higher open for the markets, with the S&P 500 futures up by 1.1 percent.

While stocks saw a notable advance during Tuesday’s session, traders may still see stocks as oversold following the recent weakness in the markets.

Concerns the U.S. economy is headed for a recession dragged the Nasdaq and the S&P 500 down to three-month lows on Monday.

Positive sentiment may also be generated in reaction to quarterly results from Disney (DIS), as the entertainment giant reported better than expected fiscal third quarter earnings.

Overall trading activity may be somewhat subdued, however, as a lack of major U.S. economic data may keep some traders on the sidelines.

U.S. stocks closed higher on Tuesday, recovering well after three successive days of losses, as investors shrugged off fears of a recession and geopolitical concerns.

The major averages all closed on a firm note. The Dow ended up 294.39 points or 0.8 percent at 38,997.66. The S&P 500 closed up by 53.70 points or 1.0 percent at 5,240.03, while the Nasdaq settled higher by 166.77 points or 1.0 percent at 16,366.85.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan’s Nikkei 225 Index jumped by 1.2 percent, while Hong Kong’s Hang Seng Index surged by 1.4 percent.

The major European markets have also shown strong moves to the upside on the day. While the French CAC 40 Index is up by 1.4 percent, the U.K.’s FTSE 100 Index and the German DAX Index are both up by 1.1 percent.

In commodities trading, crude oil futures are surging $1.72 to $74.92 a barrel after rising $0.26 to $73.20 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $2,440.20, up $8.60 compared to the previous session’s close of $2,431.60. On Tuesday, gold fell $12.80.

On the currency front, the U.S. dollar is trading at 147.02 yen compared to the 144.34 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0915 compared to yesterday’s $1.0931.