US pre-open: Stocks look set to claw back some losses
Wall Street futures were in the green ahead of the bell on Tuesday as stocks looked set to reclaim some of their recent heavy losses.
As of 1220 BST, Dow Jones futures were up 0.61%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.68% and 1.08% higher, respectively.
The Dow closed 653.67 points lower on Monday extending losses recorded in the previous session.
Tuesday morning's early moves came as the yield on the benchmark 10-year Treasury note eased off slightly from multiyear highs to trade at roughly 3.022% prior to the opening bell.
AvaTrade's Naeem Aslam said: "Dark economic outlook, soaring inflation, and fear of stagflation are driving the current momentum in the global equity market. The US equity indices hit their lowest level in thirteen months yesterday. Despite this weakness which represents an opportunity for bargain hunters, some have doubts about their participation in the markets today as they believe that the activity may not last for long.
"Basically, equity traders are also feeling uncomfortable about the Fed's warning of worsening liquidity conditions across key financial markets due to the rising risk factors such as stagflation. However, it is important to state that if the next inflation reading shows that it has reached its optimum level, then it is by no means exaggeration that the Fed's hawkish stance has peaked as well. And this means that the current fear about the Fed's hawkish monetary policy is only creating excessive fear among traders. Hence, the existing sell-off could be an opportunity for traders and investors."
On the macro front, the National Federation of Independent Business' small business optimism index was unchanged month-on-month in April at 93.2 as it still hovered at levels not seen in two years.
Still to come, the Federal Reserve's John Williams, Raphael Bostic, Neel Kashkari, Loretta Mester, and Christopher Waller will all speak throughout the course of the day.
In the corporate space, Warner Music and Peloton were both slated to publish their latest set of quarterly earnings before the open, while Electronic Arts and H&R Block will report after the close.
Reporting by Iain Gilbert at Sharecast.com