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

wallstreet sept06 17jun22 lt

Following the sell-off seen in the previous session, stocks are likely to move back to the upside in early trading on Friday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 203 points.

Bargain hunting may contribute to initial strength on Wall Street, with traders likely to pick up stocks at reduced levels after the steep drop seen in yesterday's session.

China's pledge to act decisively in ramping up support for the ailing economy may also contribute to an early rebound.

Buying interest may be somewhat subdued, however, as concerns about the economic outlook amid aggressive monetary policy tightening by global central banks continues to weigh on the markets.

Just before the start of trading, the Federal Reserve is scheduled to release its report on industrial production in the month of May. Industrial production is expected to increase by 0.4 percent in May after jumping by 1.1 percent in April.

The Conference Board is also due to release its report on leading economic indicators in the month of May shortly after the open. The leading economic index is expected to decrease by 0.4 percent.

Stocks moved sharply lower over the course of the trading session on Thursday, more than offsetting the rally seen during trading on Wednesday. With the sharp pullback on the day, the major averages tumbled to their lowest closing levels in well over a year.

The major averages climbed off their worst levels going into the close but still posted steep losses on the day. The Dow plunged 741.46 points or 2.4 percent to 29,927.07, The Nasdaq plummeted 453.06 points or 4.1 percent to 10,646.10 and the S&P 500 dove 123.22 points or 3.3 percent to 3,666.77.

In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Friday. Japan's Nikkei 225 Index tumbled by 1.8 percent, while China's Shanghai Composite Index jumped by 1 percent.

Meanwhile, the major European markets have all moved back to the upside on the day. While the German DAX Index is up by 1.2 percent, the U.K.'s FTSE 100 Index is up by 1 percent and the French CAC 40 Index is up by 0.9 percent.

In commodities trading, crude oil futures are falling $0.52 to $117.07 a barrel after surging $2.28 to $117.59 a barrel on Thursday. Meanwhile, after jumping $30.30 to $1,849.90 an ounce in the previous session, gold futures are inching up $2.70 to $1,852.60 an ounce.

On the currency front, the U.S. dollar is trading at 134.52 yen versus the 132.21 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0503 compared to yesterday's $1.0549.

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