After ending last week's trading notably lower, stocks may move back to the upside in early trading on Monday. The major index futures are currently pointing to a sharply higher open for the markets, with the Dow futures up by 111 points.
The upward momentum for U.S. stocks is partly due to strength in the global markets, with Japan's Nikkei 225 Index surging up by nearly 3 percent on the day.
Traders seem to be expressing some optimism about the outcome of the Federal Reserve's two-day monetary policy meeting that ends on Wednesday.
While the Fed is not expected to announce an immediate change in policy, traders will be looking for any signals reading when the central bank will scale back its stimulus program.
Daiwa Capital Markets' Chris Scicluna said, "All eyes will turn to the post-meeting press conference where Bernanke will unveil the Fed's latest economic projections - relevant for the timing of the first rate hike - and hopefully provide greater clarity on the likely timeframe for tapering asset purchases."
Positive sentiment was also generated by the release of the New York Federal Reserve's monthly report on regional manufacturing activity.
The New York Fed said its general business conditions index rose to a positive 7.8 in June from a negative 1.4 in May, with a positive reading indicating an increase in regional manufacturing activity. Economists had expected to climb to a positive 0.5.
Not long after the start of trading, the National Association of Home Builders is scheduled to release a separate report on homebuilder confidence in the month of June. Economists expect the NAHB's housing market index to inch up to 45 from 44 in the previous month.
After moving sharply higher during trading on Thursday, stocks gave back some ground over the course of the trading day on Friday. A disappointing batch of U.S. economic data weighed on the markets.
The major averages moved roughly sideways in afternoon trading, stuck firmly in negative territory. The Dow ended the day down 105.90 points or 0.7 percent at 15,070.18, the Nasdaq dropped 21.81 points or 0.6 percent to 3,423.56 and the S&P 500 slipped 9.63 points or 0.6 percent to 1,626.73.
With the losses on the day, the major averages all moved notably lower for the week. The S&P 500 fell by 1 percent, while the Dow and the Nasdaq slid by 1.2 percent and 1.3 percent, respectively.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index surged up by 2.7 percent, while Hong Kong's Hang Seng Index advanced by 1.2 percent.
The major European markets have also moved to the upside on the day. While the U.K.'s FTSE 100 Index has risen by 0.8 percent, the German DAX Index and the French CAC 40 Index are up by 1.3 percent and 1.5 percent, respectively.
In commodities trading, crude oil futures are climbing $0.35 to $98.20 a barrel after rising $1.82 or 1.9 percent to $97.85 a barrel in the week ended June 14th. Gold futures, which rose $4.60 or 0.3 percent to $1,387.60 an ounce last week, are slipping $3.60 to $1,384 an ounce.
On the currency front, the U.S. dollar came under pressure last week, slumping 3.4 percent against the yen to end the week at 94.29 yen. The greenback also fell 1 percent against the euro to $1.3347. The dollar is currently trading at 94.82 yen and is valued at $1.3340 versus the euro.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.