Dow futures gain slightly after all three major averages post second day of losses
Brendan McDermid | Reuters
Dow Jones Industrial Average futures were higher on Tuesday night after all three major averages fell for a second straight day.
Futures contracts linked to the Dow Jones added 64 points, or 0.2%. S&P 500 futures gained 0.1% and Nasdaq 100 futures were flat.
In normal trading hours, House Speaker Nancy Pelosi’s controversial visit to Taiwan weighed on investors, who feared it would further strain already strained U.S.-China relations. China had spent weeks warning him not to make the trip. Markets fell further after three Federal Reserve chairmen hinted that further rate hikes would be needed to combat high inflation.
“Despite the fact that much of today’s attention is still riveted on the Federal Reserve and its continued struggle to rein in inflation, many economic policies have already embarked on a new round of easing” , said Jim Paulsen of the Leuthold Group. “The prospect of lower inflation not only helps usher in a new round of easing, but is likely to fuel renewed confidence in the private sector which has untapped potential.”
Traders are also anticipating another batch of profits in the second quarter. CVS, Regeneron, Under Armor and Moderna will report before the bell on Wednesday.
In economic data, investors are awaiting mortgage demand numbers this week and PMI data on Wednesday.