After the market ended at a fresh record on Monday, traders have positioned themselves for more gains. The index futures are modestly higher early Tuesday. China, the second largest economy in the world, decided to go bold, with the nation’s central bank announcing a series of stimulatory measures. This has sent commodities soaring, given China is a commodity-guzzling country. China’s growth has a bearing on the rest of the global economy as it is often called the world’s factory.
In the domestic market, traders may look ahead to a speech by a Federal Reserve official, a consumer confidence reading and a couple of house prices data. Momentum suggests additional gains but the overbought levels may introduce caution, especially ahead of key inflation data due this week and more labor market data that would roll out next week.
Futures
Performance (+/-)
Nasdaq 100
+0.32%
S&P 500
+0.19%
Dow
+0.17%
R2K
+0.44%
In premarket trading on Tuesday, the SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.23% to $570.96 and the Invesco QQQ ETF (NASDAQ:QQQ) climbed 0.35% to $484.74, according to Benzinga Pro data.
Cues From Last Session:
U.S. stocks closed Monday’s session modestly higher although trading was marked by some degree of volatility. The major indices opened higher, as they digested comments from Fed officials, and reacted to S&P Global private sector activity readings, which showed the manufacturing sector contracted more than expected. Minneapolis Fed President Neel Kashkari said in an interview with CNBC’s Squawk Box that he favored a slowdown in rate cuts.
The indices traded on a nervous note, with the Dow Industrials and the Nasdaq Composite dipping below the unchanged line in the mid-session before making a comeback. The Dow hit new intraday and closing highs, while the S&P 500 Index, despite the mid-session volatility, traded in the green throughout the session and ended at a fresh high.
Among S&P ...
