Inventory futures inches larger after the broad rebound on Tuesday
Stock futures gained inches in overnight trading after the market recovered on Tuesday from a technology-driven sell-off the day before.
Futures on the Dow Jones Industrial Average gained 50 points, or 0.15%. S&P 500 futures rose 0.1% and Nasdaq 100 futures rose 0.1%.
The market experienced a broad rally during Tuesday’s regular trading hours, with nine out of eleven S&P 500 sectors closing positive. The Dow gained 312 points, or 0.92%. The S&P 500 was up 1.05% and the Nasdaq Composite was up 1.25%.
Mega-cap tech stocks closed higher Tuesday after falling in the previous trading session. Facebook remained in focus after a prolonged outage and a whistleblower claim that the company knows it is harming people.
The financial sector ended Tuesday up 1.78% as the best-performing segment of the S&P 500. Other sectors geared towards economic recovery also posted gains. Energy stocks rose as oil prices rose. Cruise, airline and retail stocks also rose.
Better-than-expected output on Tuesday supported optimism about the economic recovery. The index report of the purchasing managers’ index for services of the Institute for Procurement Management for September rose to 61.9 from 61.7 in August, 0.2 points better than expected.
“Investors are taking risk from another strong business sentiment survey that may suggest the delta-driven growth slowdown in late summer is a thing of the past,” Goldman Sachs’ Chris Hussey said in a statement Tuesday.
Denim retailer Levi Strauss and alcoholic beverage group Constellation Brands will release their quarterly results on Wednesday.
The September private ADP payroll report is due to be released on Wednesday. On the labor market front too, the closely monitored report on payrolls outside of agriculture for September is due to be published on Friday.