U.S. Stocks May Extend Yesterday’s Rally In Early Trading

Following the rally seen in the previous session, stocks are likely to see further upside in early trading on Tuesday. The major index futures are currently pointing to a sharply higher open for the markets, with the Dow futures up by 778 points.

The markets may continue to benefit from signs that the spread of the coronavirus is slowing in hot spots such as New York, the epicenter of the global pandemic.

New York Governor Andrew Cuomo said Monday that the number of new coronavirus deaths in the state has been “effectively flat” over the past two days.

With death and hospitalization rates starting to stabilize, Cuomo said New York is seeing a “possible flattening of the curve” but cautioned that people need to continue to adhere to social distancing guidelines to prevent a reversal of the trend.

President Donald Trump also expressed optimism during the daily White House coronavirus briefing on Monday, saying, “There’s tremendous light at the end of the tunnel.”

Trump noted ten potential coronavirus treatments are currently in active trials, with some “looking incredibly successful.”

Expectations of more central bank and government stimulus to counter the economic fallout from the pandemic may also generate buying interest.

After declaring a month-long state of emergency for Tokyo and six other prefectures, the Japanese government is expected to approve a coronavirus stimulus package totaling 108 trillion yen, or equal to 20 percent of Japan’s GDP.

Singapore also announced an additional stimulus package worth $3.6 billion in an effort to save jobs and protect the livelihoods of people amid the spread of coronavirus.

After moving sharply higher early in the session, stocks saw further upside over the course of the trading day on Monday. With the rally on the day, the major averages more than offset the steep losses posted last week.

The major averages reached new highs for the session going into the close. The Dow soared 1,627.46 points or 7.7 percent to 22,679.99, the Nasdaq spiked 540.15 points or 7.3 percent to 7,913.24 and the S&P 500 surged up 175.03 points or 7 percent to 2,663.68.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan’s Nikkei 225 Index jumped by 2 percent, while China’s Shanghai Composite Index shot up by 2.1 percent.

The major European markets are also showing another substantial move to the upside on the day. While the German DAX Index has spiked by 3.2 percent, the U.K.’s FTSE 100 Index and the French CAC 40 Index are up by 2.5 percent and 2.4 percent, respectively.

In commodities trading, crude oil futures are rising $0.46 to $26.54 a barrel after tumbling $2.26 to $26.08 a barrel on Monday. Meanwhile, after spiking $48.20 to $1,693.90 an ounce in the previous session, gold futures are climbing $16 to $1,709.90 an ounce.

On the currency front, the U.S. dollar is trading at 108.91 yen compared to the 109.22 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0910 compared to yesterday’s $1.0793.

Source: Read Full Article