Wall Street futures indicated a moderately positive shift in the market pre-bell on Tuesday, as traders began regaining their footing after recent downturns in global equities markets. Investors are keenly searching for value opportunities amidst the fluctuations. In the futures market, the S&P 500 experienced a rise of 0.9%, while the Nasdaq showed an increase of 0.8%.
The Dow Jones, not to be left behind, was also up by 0.6%, reflecting a general optimism among traders. A critical focus for investors is the CME Fedwatch Tool, which predicts a substantial 78% likelihood of a 50-basis-point rate cut by the US Federal Reserve during their policy meeting in mid-September.
This expectation could play a vital role in shaping market movements in the coming weeks. Asian exchanges mirrored this positive sentiment overnight, predominantly leading with a notable 10% rebound in Tokyo, following a steep 12% drop on Monday. Moreover, tech-centric indices in Seoul and Taiwan both recorded impressive gains, rising more than 3% during the day's trading. Meanwhile, European bourses traded steadily as midday approached on the continent, indicating a cautious yet optimistic outlook. Prominent companies were in the spotlight pre-bell with Caterpillar (CAT) trading up an impressive 7.3% after reporting Q2 results that surpassed market consensus before the opening bell.
Duke Energy (DUK) also performed evenly pre-bell after announcing higher adjusted earnings and operating revenue for Q2. Adding to the positive narrative, Palantir Technologies (PLTR) saw its stock rise by 8.3% pre-bell following the software company's announcement of optimistic Q2 results and an elevated fiscal 2024 revenue outlook released late Monday. Looking ahead, major players such as Amgen (AMGN) and Airbnb (ABNB) are scheduled to report their earnings after the market closes, with expectations high for their performance. In terms of economic indicators, investors are also looking forward to the international trade in goods and services bulletin for June, set to be released at 8:30 am ET, which could provide further insights into economic health. In the premarket activity, Bitcoin was trading at $55,232, while West Texas Intermediate crude oil saw an uptick, trading higher at $73.36.
10-year US Treasuries offered a yield of 3.83%, and spot gold was priced at $2,414 per ounce, reflecting varying interests across different asset classes. $US30 $US500.