Futures Pointing To Continued Strength On Wall Street
Stocks may move to the upside in early trading on Wednesday, extending the advance seen over the course of the previous session. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.3 percent.
The upward momentum on Wall Street partly reflects ongoing optimism about China’s reopening, which has partly offset concerns about the global outlook economy.
Traders may also look to continue picking up stocks at relatively reduced levels following the considerable weakness seen last year.
Tech stocks have seen a notable benefit from bargain hunting, with the Nasdaq closing higher for three consecutive sessions.
Overall trading activity may be somewhat subdued, however, as traders look ahead to the release of a highly anticipated report on consumer price inflation on Thursday.
The report is expected to show a slowdown in the annual rate of consumer price growth and could have a significant impact on the outlook for interest rates.
After swinging between gains and losses until a little past noon, U.S. stocks climbed higher and settled on a firm note on Tuesday. Optimism surrounding China’s reopening helped offset concerns about interest rates.
The major averages all ended with strong gains. The Dow ended higher by 186.45 points or 0.6 percent at 33,704.10. The S&P 500 settled at 3,919.25, up 27.16 points or 0.7 percent from the previous close. The Nasdaq jumped 106.98 points or 1.0 percent to settle at 10,742.63.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan’s Nikkei 225 Index shot up by 1.0 percent, while Hong Kong’s Hang Seng Index climbed by 0.5 percent.
The major European markets have also moved to the upside on the day. While the German DAX Index is up by 1.1 percent, the French CAC 40 Index is up by 1.0 percent and the U.K.’s FTSE 100 Index is up by 0.8 percent.
In commodities trading, crude oil futures are jumping $1 to $76.12 a barrel after climbing $0.49 to $75.12 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $1,882.20, up $5.70 compared to the previous session’s close of $1,876.50. On Tuesday, gold edged down $1.30.
On the currency front, the U.S. dollar is trading at 132.68 yen compared to the 132.26 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0748 compared to yesterday’s $1.0733.
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