© Reuters. FILE PHOTO: A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 7, 2022. REUTERS/Brendan McDermid/File Photo
(Reuters) – U.S. stock index futures pointed to a potential rebound on Wall Street on Tuesday after a sharp selloff in the previous session pushed the into bear market territory.
The benchmark S&P 500 on Monday closed 20% below its all-time closing high hit on Jan. 3, while a key part of the Treasury yield curve inverted for the first time since April on mounting fears that the Federal Reserve’s attempts to control soaring inflation will dent the economy. [US/]
The selling pressure appeared to ease in premarket trading. Market heavyweights such as Apple Inc (NASDAQ:), Amazon.com Inc (NASDAQ:), Microsoft Corp (NASDAQ:) and Tesla (NASDAQ:) rose between 0.7% and 1.6%.
Oracle Corp (NYSE:) was another gainer after posting upbeat quarterly results on demand for its cloud products. Its shares jumped 13.2%.
“There may be opportunity for a bit of a breather from the aggressive expectations baked in, and you can see that in terms of how the markets are wandering today,” said Edward Park, chief investment officer at Brooks Macdonald Asset Management in London.
“Markets are undoubtedly going to be choppy.”
The mood remained fragile ahead of the Federal Reserve’s policy decision on Wednesday. Investors expect the U.S. central bank to raise interest rates by a big 75 basis points after last week’s inflation data came in much hotter than anticipated.
At 06:50 a.m. ET, were up 103 points, or 0.34%, were up 20.25 points, or 0.54%, and were up 98.5 points, or 0.87%.
The Labor Department will release producer price index (PPI) data at 8:30 a.m. ET. PPI for final demand likely rose 0.8% last month, after gaining 0.5% in April.
Among other stocks, medical equipment maker ResMed Inc rose 1% after announcing a $1 billion deal for German healthcare software provider MEDIFOX DAN GmbH.
Continental Resources (NYSE:) Inc jumped 7.3% after the shale producer received an all-cash buyout proposal from its founder Harold Hamm, valuing the company at $25.41 billion.
United Airlines Holdings (NASDAQ:) Inc rose 0.7% after saying searches for international travel increased after the United States last week ended requirement that air travelers arriving in the country test negative for COVID-19.