U.S. Stocks May Move To The Upside In Early Trading

wallstreetmarch0220 21jun22 lt

With trading resuming following the long holiday weekend, stocks are likely to move to the upside in early trading on Tuesday. The major index futures are currently pointing to a notable higher open for the markets, with the Dow futures up by 409 points.

Traders may look to pick up stocks at reduced levels following recent weakness, which saw the Dow end last Friday's trading at its lowest closing level in well over a year.

Bargain hunting has also contributed to strength in the overseas markets and may carry over onto Wall Street early in the session.

Buying interest may remain somewhat subdued, however, as concerns about the economic outlook amid aggressive monetary policy tightening by global central banks continue to hang over the markets.

Shortly after the start of trading, the National Association of Realtors is scheduled to release its report on existing home sales in the month of May. Existing home sales are expected to edge down by 0.2 percent in May after tumbling by 2.4 percent in April.

Following the sell-off seen during trading on Thursday, stocks saw substantial volatility over the course of the session on Friday. The major averages showed wild swings as the day progressed before finishing the session mixed.

While the tech-heavy Nasdaq jumped 152.25 points or 1.4 percent to 10,798.35 and the S&P 500 crept up 8.07 points or 0.2 percent to 3,674.84, the narrower Dow edged down 38.29 points or 0.1 percent to 29,888.78, closing at its lowest level since December of 2020.

Despite the mixed performance on the day, the major averages all moved sharply lower for the week. The Dow and the Nasdaq both plunged by 4.8 percent, while the S&P 500 tumbled by 5.8 percent for its worst week since 2020.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Tuesday. Japan's Nikkei 225 Index and Hong Kong's Hang Seng Index surged by 1.8 percent and 1.9 percent, respectively, although China's Shanghai Composite Index bucked the uptrend and dipped by 0.3 percent.

The major European markets have also moved to the upside on the day. While the French CAC 40 Index has jumped by 1 percent, the U.K.'s FTSE 100 Index is up by 0.6 percent and the German DAX Index is up by 0.4 percent.

In commodities trading, crude oil futures are jumping $2.38 to $110.37 a barrel after plummeting $$7.26 to $107.99 a barrel last Friday. Meanwhile, after falling $9.30 to $1,840.60 an ounce in the previous session, gold futures are slipping $2.60 to $1,838 an ounce.

On the currency front, the U.S. dollar is trading at 136.04 yen versus the 135.07 yen it fetched on Monday. Against the euro, the dollar is trading at $1.0553 compared to yesterday's $1.0511.

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