Following the rally 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 modestly lower open for the markets, with the Dow futures down by 38 points.
Profit taking may contribute to initial weakness on Wall Street, as some traders look to cash in on the recent strength in the markets.
The Dow and the S&P 500 both ended Monday’s trading at record closing highs, while the tech-heavy Nasdaq extended last week’s rally to reach its best closing level in well over a month.
Any early selling pressure is likely to be relatively subdued, however, with traders worried about missing out on further upside.
A quiet day on the U.S. economic front may also keep traders on the sidelines ahead of the release of the minutes of the Federal Reserve’s latest monetary policy meeting on Wednesday.
Reports on weekly jobless claims, the U.S. trade deficit and producer price inflation may also attract attention in the coming days along with remarks by Fed Chair Jerome Powell.
Stocks showed a significant move to the upside on Monday as trading resumed following the long holiday weekend. With the upward move on the day, the Dow and the S&P 500 reached new record closing highs.
The major averages all closed firmly in positive territory. The Dow jumped 373.98 points or 1.1 percent to 33,527.19, the Nasdaq spiked 225.49 points or 1.7 percent to 13,705.59 and the S&P 500 surged up 58.04 points or 1.4 percent to 4,077.91.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index tumbled by 1.3 percent, while Australia’s S&P/ASX 200 Index advanced by 0.8 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the French CAC 40 Index has risen by 0.5 percent, the German DAX Index and the U.K.’s FTSE 100 Index are jumping by 1.1 percent and 1.2 percent, respectively.
In commodities trading, crude oil futures are surging up $1.20 to $59.85 a barrel after plummeting $2.80 to $58.65 barrel on Monday. Meanwhile, after inching up $0.40 to $1,728.80 an ounce in the previous session, gold futures are climbing $7.70 to $1,736.50 an ounce.
On the currency front, the U.S. dollar is trading at 110.02 yen compared to the 110.18 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1827 compared to yesterday’s $1.1813.
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