Stocks - U.S. Futures Higher as Market Eyes More Fed Stimulus

Stocks - U.S. Futures Higher as Market Eyes More Fed Stimulus

Investing.com  | Jun 16, 2020 07:07

Stocks - U.S. Futures Higher as Market Eyes More Fed Stimulus

By Peter Nurse   

Investing.com - U.S. stocks are set to open higher Tuesday, continuing Monday’s late bounce amid hopes U.S. authorities will continue to offer stimulus to support the economy.

At 07:05 AM ET (1105 GMT), S&P 500 Futures traded 39 points, or 1.3%, higher, Nasdaq 100 Futures up 115 points, or 1.2%. The Dow Futures contract rose 478 points, or 1.9%. 

The U.S. central bank said late Monday it will soon start purchasing individual corporate debt, in another effort to support the credit market as part of its emergency facilities introduced in the wake of the coronavirus pandemic.

This helped Wall Street close higher, reversing hefty earlier losses. The Dow Jones Industrial Average ended up 0.6%, or 157 points, after falling more than 300 points at the open. The S&P 500 gained 0.8%, while the Nasdaq Composite added 1.4%.

Adding additional support Tuesday is a report that the Trump administration is preparing a nearly $1 trillion infrastructure proposal in order to support the world’s largest economy.

This news has outweighed worries of a second wave of the Covid-19 virus, with several states including Texas and California reporting a resurgence of new cases.

Focus will soon turn to Fed chair Jerome Powell as he testifies in front of the Senate on his economic outlook and recent monetary policy decisions, at 10 AM ET (1400 GMT).

Last week, the Fed left interest rates unchanged near zero and said the central bank would do anything needed to support the economy as it struggles to recover from Covid-19 business shutdowns. 

Ahead of Powell’s appearance there will be the release of the April retail sales numbers, at 8:30 AM ET. These are expected to show a strong rebound, up 8%, after a decline of 16.4% in the prior month.

The retail sales data will be followed by industrial production and manufacturing output figures at 9:15 AM.

In corporate news, Oracle (NYSE:ORCL) is out with earnings after the market close. The tech giant is one of the first to report a full quarter that was nearly all consumed by Covid-19 business shutdowns.

Also in the spotlight is Apple (NASDAQ:AAPL). EU antitrust authorities have launched two probes into whether it violated competition laws through its Apple Pay service and its App Store for software that runs on its mobile devices.

Oil prices edged higher Tuesday, helped by the International Energy Agency's upward revision to its forecasts for global oil demand this year and next. The IEA still expects demand to contract on average by over 8 million barrels a day this year, however.

U.S. crude prices rose 1.6% to $37.70 a barrel, while Brent Futures climbed 1.7% to $40.40.

Elsewhere, gold futures rose 0.6% to $1,736.35/oz, while EUR/USD traded at 1.1319, down 0.1%.

 

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Enio Macera
Enio Macera

what ever happened to fundamentals   ... (Read More)

Jun 16, 2020 12:02 GMT· Reply
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.