Stock futures rose in early morning trading Tuesday following a brutal week as investors assessed a more aggressive Federal Reserve and rising chances of a recession.
Futures on the Dow Jones Industrial Average jumped 458 points, or 1.5%. S&P 500 futures climbed 1.7%, and Nasdaq 100 futures popped 1.7%. U.S. stock markets were closed Monday for Juneteenth.
“There’s not a single reason for the bounce in equities, and the overwhelming view is dismissing the uptick as being nothing more than dead cat, something that should be faded just like all the other rally attempts lately. We push back a little bit on that view, largely because of an approaching inflation shift,” wrote Adam Crisafulli of Vital Knowledge.
Crisafulli noted that Brent crude was trading roughly $10 below a recent high, while President Joe Biden gets set for a trip to Saudi Arabia to discuss energy production. He also pointed out that iron ore and copper have fallen recently.
“If commodities can stay on a downward trajectory, it would remove a massive overhang from equity markets,” He said.
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