logo
Plus   Neg
Share
Email

U.S. Stocks May Regain Ground After Yesterday's Sell-Off

wallstreet-aug21_14may19-lt.jpg

Following the sell-off seen in the previous session, stocks are likely to move back to the upside in early trading on Tuesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 112 points.

Bargain hunting may contribute to early strength on Wall Street, with traders picking up stocks at reduced levels on the heels of the steep drop seen in Monday.

The markets may also benefit from optimism the U.S. and China will eventually reach a trade deal despite the retaliatory tariffs announced by China.

President Donald Trump has continued to express confidence the Chinese will yield to U.S. demands, claiming a trade agreement was 95 percent complete before China reneged.

Trump has repeatedly argued that the U.S. is in a stronger position than China in the negotiations, citing the recent strength of the U.S. economy.

"If you looked at the first quarter — which is always, historically, the worst quarter — we were at 3.2 percent. People were very surprised," Trump told reporters on Monday.

"Well, a lot of that was the tariffs that we were taking in from China," he added. "So we're in a very good position and I think it's only going to get better."

Trump also indicated that he will be meeting with Chinese President Xi Jinping at the G20 Summit in Japan late next month.

"We have a very good relationship. Maybe something will happen," Trump said. "But we're going to be meeting, as you know, at the G20 in Japan. And that will be, I think, probably, a very fruitful meeting."

Stocks moved sharply lower over the course of the trading session on Monday amid concerns about a full-fledged trade war between the U.S. and China. The Dow tumbled to a three-month closing low, while the Nasdaq and the S&P 500 slumped to their lowest closing levels in over a month.

The major averages ended the session off their lows of the day but still firmly in negative territory. The Dow plunged 617.38 points or 2.4 percent to 25,324.99, the Nasdaq plummeted 269.92 points or 3.4 percent to 7,647.02 and the S&P 500 dove 69.53 points or 2.4 percent to 2,811.87.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan's Nikkei 225 Index slid by 0.6 percent, while Hong Kong's Hang Seng Index tumbled by 1.5 percent.

Meanwhile, the major European markets are rebounding from recent weakness. While the German DAX Index has risen by 0.4 percent, the U.K.'s FTSE 100 Index is up by 0.9 percent and the French CAC 40 Index is up by 1 percent.

In commodities trading, crude oil futures are climbing $0.53 to $61.57 barrel after falling $0.62 to $61.04 a barrel on Monday. Meanwhile, after jumping $14.40 to $1,301.80 ounce in the previous session, gold futures are slipping $1.60 to $1,300.20 an ounce.

On the currency front, the U.S. dollar is trading at 109.51 yen compared to the 109.30 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1212 compared to yesterday's $1.1222.

For comments and feedback contact: editorial@rttnews.com

Follow RTT