In a notable turnaround, US equity futures showed promise as they rose ahead of Tuesday's opening bell, bouncing back from the steep sell-off on Monday that triggered worries over a potential economic slowdown. This positive shift indicates that investors are cautiously optimistic despite the backdrop of economic uncertainty.
The futures for the Dow Jones Industrial Average rose by 0.4%, while the S&P 500 and Nasdaq also experienced an increase of 0.4%. This upward momentum is a welcome sign for market participants after the disappointing economic indicators presented earlier. A report from the Bureau of Labor Statistics revealed that the jobs report for July was weaker than anticipated, igniting fears about a looming recession.
Consequently, US benchmark equity indexes concluded Monday's trading session on a negative note. In another market sector, oil prices have experienced a slight dip, with front-month global benchmark North Sea Brent crude decreasing by 0.7% to $75.77 per barrel. Additionally, US West Texas Intermediate crude also slid down by 0.7%, settling at $72.42 per barrel. Earlier today, the US trade deficit figures were released, narrowing to $73.11 billion in June from $75.01 billion in May.
This came in slightly above analysts' estimates compiled by Bloomberg, which forecasted a gap of $72.5 billion, reflecting a marginal improvement in trade balances. Taking a global perspective, Japan's Nikkei index registered a solid 10% increase, while Hong Kong's Hang Seng index ended the day 0.3% lower.
The Chinese stock market, represented by the Shanghai Composite, also closed higher by 0.2%. On the other hand, the UK's FTSE 100 recorded a 0.4% decrease, followed by Germany's DAX index, which slipped by 0.1% during the early afternoon trading session in Europe. In the equities market, shares of Caterpillar ($CAT) saw a notable rise of 2.1% in pre-market trading after reporting higher-than-expected adjusted profits for Q2.
In a dramatic turn, Tenax Therapeutics ($TENX) shares surged a staggering 78% following the announcement of an oversubscribed private placement financing round raising $100 million. Another strong performer was Lumen Technologies ($LUMN), with shares jumping 47% after revealing it had secured $5 billion in new business. Conversely, on the downside, Chegg ($CHGG) reported a 14% decline in shares following the announcement of a drop in Q2 adjusted profits and revenue.
Meanwhile, shares of ZoomInfo Technologies ($ZI) decreased by 12% on the back of disappointing Q2 financials and a lower outlook for the full fiscal year..