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U.S. Stocks Likely To Extend Recent Upward Trend

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Stocks are likely to move to the upside in early trading on Tuesday, extending the upward trend seen over the past several sessions. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 145 points.

The markets are likely to benefit from recent upward momentum, which has helped stocks bounce well off the multi-month lows set last month.

Optimism about a potential interest rate cut by the Federal Reserve has contributed to the recent rebound on Wall Street, with the central bank due to make its latest monetary policy decision next week.

The Fed is widely expected to leave interest rates unchanged next week, although the chances for a rate cut next month have spiked since Fed Chairman Jerome Powell pledged to act "as appropriate" to support the economic expansion.

A report from the Labor Department showing wholesale price inflation remains contained may add to confidence that the Fed can feel comfortable lowering rates.

The Labor Department said its producer price index for final demand inched up by 0.2 percent in May after rising by 0.2 percent in April. The uptick in prices matched economist estimates.

Excluding food and energy prices, core producer prices rose by 0.2 percent in May after edging up by 0.1 percent in the previous month. The increase in core prices also met expectations.

The report also said the annual rate of growth in producer prices slowed to 1.8 percent from 2.2 percent in April, coming in below estimates for an increase of 2.0 percent.

On Wednesday, the Labor Department is scheduled to release its more closely watched report on consumer price inflation in May.

Stocks showed a strong upward move in morning trading on Monday but gave back some ground over the course of the afternoon. The major averages still managed to end the day in positive territory, adding to the strong gains posted last week.

The tech-heavy Nasdaq outperformed its counterparts, surging up 81.07 points or 1.1 percent to 7,823.17, while the Dow and the S&P 500 reached their best closing levels in a month. The Dow rose 78.74 points or 0.3 percent to 26,062.68 and the S&P 500 climbed 13.39 points or 0.5 percent to 2,886.73.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index rose by 0.3 percent, while China's Shanghai Composite Index spiked by 2.6 percent.

The major European markets have also moved to the upside on the day. While the German DAX Index has jumped by 1.4 percent, the French CAC 40 Index is up by 0.8 percent and the U.K.'s FTSE 100 Index is up by 0.5 percent.

In commodities trading, crude oil futures are climbing $0.73 to $53.99 barrel after sliding $0.73 to $53.26 a barrel on Monday. Meanwhile, after plunging $16.80 to $1,329.30 ounce in the previous session, gold futures are slipping $3.60 to $1,325.70 an ounce.

On the currency front, the U.S. dollar is trading at 108.72 yen compared to the 108.45 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1311 compared to yesterday's $1.1312.

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