Stock futures trade higher adding to gains
Investors will get fresh reports on manufacturing and services
U.S. equity futures are pointing to a higher open when the Wall Street session begins on Wednesday.
Dow futures are suggesting a rise of 0.7 percent.
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On Tuesday, the S&P 500 gained 1.1%, ending a four-day losing streak amid a raft of worries about the pandemic and how governments are responding to it.
The head of the Federal Reserve, Jerome Powell, is pressing Congress for more aid to support the economy’s recovery, citing worries over the lingering impact of the pandemic.
On the economic docket, the research firm IHS Markit will release its flash manufacturing and service PMIs for September. Manufacturing is expected to hold steady from August, with services pulling back slightly. Recall that readings above 50 point to an expanding sector:
POWELL AND MNUCHIN VOICE OPTIMISM BUT BACK MORE ECONOMIC AID
In Asia, Tokyo's Nikkei 225 fell 0.1%, reopening after a four-day weekend, while the Hang Seng in Hong Kong edged 0.1% higher and China's Shanghai Composite index inched up 0.2%
In Europe, London's FTSE added 2.3%, Germany's DAX gained 1.7% and France's CAC rose 1.9%.
On Wall Street, the S&P 500 climbed 1.1% to 3,315.57, led by solid gains in technology and communications stocks, and companies that rely on consumer spending. Banks, health care and energy stocks closed lower.
The gains helped the market recover some of its losses a day after stocks tumbled amid a raft of worries about the pandemic and governments’ response to it.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 37986.4 | +211.02 | +0.56% |
| SP500 | S&P 500 | 4967.23 | -43.89 | -0.88% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15282.009722 | -319.49 | -2.05% |
The Dow Jones Industrial Average gained 0.5% to 27,288.18. The Nasdaq composite climbed 1.7% to 10,963.64.
A long list of concerns for investors has caused big swings in the market, from worries that stocks have grown too expensive to frustration about Congress’ refusal so far to deliver more aid to the struggling economy.
The Federal Reserve chair pressed Congress to act on additional aid for the economy during a House of Representatives committee hearing Tuesday, saying that the economy appears to be improving, but still likely needs more government stimulus. Extra weekly unemployment benefits and other stimulus that Congress approved in March have expired, and some areas of the economy have already slowed as a result.
Among other concerns for investors are rising tensions between the United States and China, which could lead to a Chinese retaliation against U.S tech companies, as well as the upcoming U.S. elections and all the changes in tax policy and regulations they can create.
Traders also bid up shares in homebuilders after the National Association of Realtors said that sales of previously occupied U.S. homes rose 2.4% in August to their highest level since 2006. Sales are up 10.5% from a year ago and back to pre-COVID-19 levels of early 2020.
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U.S. benchmark crude added 13 cents to $39.94 per barrel in electronic trading on the New York Mercantile Exchange. It rose 26 cents to $39.80 per barrel on Tuesday. Brent crude gained 21 cents to $41.93 per barrel.
The Associated Press contributed to this article.