U.S. Stocks May Give Back Ground In Early Trading

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Following the strong upward move seen in the previous session, stocks may give back some ground in early trading on Tuesday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 110 points.

Lingering concerns about the spiking number of coronavirus cases in several states across the country may inspire traders to cash in on yesterday's gains.

World Health Organization chief Tedros Adhanom Ghebreyesu warned Monday that "the worst is yet to come."

"The lack of national unity and lack of global solidarity and the divided world ... is actually helping the virus to spread," he said at a briefing in Geneva.

Traders are also likely to keep an eye on Federal Reserve Chair Jerome Powell and Treasury Secretary Steven Mnuchin's testimony before the House Financial Services Committee regarding the response to the pandemic.

In prepared remarks, Powell notes that output and employment remain far below their pre-pandemic levels and cautions that the outlook for the economy is "extraordinarily uncertain."

"A full recovery is unlikely until people are confident that it is safe to reengage in a broad range of activities," Powell is due to tell the committee.

He adds, "The path forward will also depend on the policy actions taken at all levels of government to provide relief and to support the recovery for as long as needed."

Just after the start of trading, MNI Indicators is due to release its report on Chicago-area business activity in the month of June.

The Chicago business barometer is expected to climb to 45.0 in June from 32.3 in May, although a reading below 50 would still indicate a contraction.

The Conference Board is also scheduled to release its report on consumer confidence in the month of June. Economists expect the consumer confidence index to rise to 90.0 in June from 86.6 in May.

U.S. stocks ended on a buoyant note on Monday despite several states in the country reporting sharp spikes in new coronavirus cases over the weekend.

Investors surprisingly shrugged off concerns about the spread of the coronavirus and kept picking up stocks, betting on hopes the central bank will come with more stimulus sometime in the near future.

The major averages all ended with handsome gains. The Dow ended up 580.25 points or 2.3 percent at 25,595.80, the S&P 500 climbed 1.5 percent to 3,053.24, and the Nasdaq advanced 1.2 percent to 9,874.15.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index jumped by 1.3 percent, while China's Shanghai Composite Index advanced by 0.8 percent.

Meanwhile, the major European markets have moved to the downside on the day. While the U.K.'s FTSE 100 Index has slumped by 1 percent, the French CAC 40 Index is down by 0.5 percent and the German DAX Index is down by 0.1 percent.

In commodities trading, crude oil futures are falling $0.68 to $39.02 a barrel after jumping $1.21 to $39.70 a barrel on Monday. Meanwhile, after inching up $0.90 to $1,781.20 an ounce in the previous session, gold futures are creeping up $0.10 to $1,781.30 an ounce.

On the currency front, the U.S. dollar is trading at 107.72 yen compared to the 107.58 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1217 compared to yesterday's $1.242.

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