Stocks are poised to rebound in early trading on Tuesday, recovering from the significant declines observed over the past two sessions. Current futures indicate a positive opening for the markets, with S&P 500 futures gaining 0.3 percent.
Investors seem inclined to purchase stocks at these lower levels, following a recent pullback that brought major averages closer to the one-month lows reached earlier in December.
Additionally, the practice of window-dressing may offer some support on Wall Street, as traders aim to enhance the appearance of their portfolios as the year concludes.
Despite recent market softness, the major indices are set for notable gains in 2024. The Nasdaq, which is technology-heavy, has risen nearly 30 percent this year. The Dow Jones has increased by 13 percent, while the S&P 500 is on track for a second consecutive yearly gain exceeding 20 percent.
However, overall trading activity might diminish as the session progresses, with traders eager to kick-start their New Year's Eve festivities early.
On Monday, after initially plunging, stocks managed to recoup some losses during the trading day, though they remained decidedly in the negative. This continued the significant losses experienced last Friday.
The Dow Jones Industrial Average recovered from its worst early-session decline of over 700 points to close down 418.48 points, or 1.0 percent, at 42,573.73. Similarly, the Nasdaq fell 235.25 points, or 1.2 percent, concluding at 19,486.78, while the S&P 500 decreased by 63.90 points, or 1.1 percent, to 5,906.94.
In foreign markets, the Asia-Pacific stock exchanges predominantly saw declines on Tuesday. Markets in Japan and South Korea were closed. China’s Shanghai Composite Index dropped by 1.6 percent, and Australia's S&P/ASX 200 Index fell by 0.9 percent.
Conversely, most European stocks are trending upwards, despite some prominent markets being closed. France’s CAC 40 Index has increased by 0.9 percent and the U.K.’s FTSE 100 Index has risen by 0.6 percent.
In commodities, crude oil futures have inched up by $0.06 to $71.05 per barrel, building on a $0.39 rise to $70.99 per barrel on Monday. In contrast to a previous session drop of $13.80, gold futures are climbing $9.30 to $2,627.40 per ounce.
On the currency landscape, the U.S. dollar is trading at 156.90 yen, compared to 156.84 yen at Monday's New York close. Against the euro, the dollar is currently valued at $1.0395, down from $1.0407 the previous day.
The material has been provided by InstaForex Company -
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