U.S. Stocks May See Further Upside In Early Trading
After climbing to new record highs in the previous session, stocks may see further upside in early trading on Tuesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 125 points.
Stocks may benefit from window dressing, as some fund managers look to further boost their portfolios going into the end of the year.
With the new year approaching, the major averages are all posting notable gains year-to-date, with the tech-heavy Nasdaq soaring by 43.8 percent.
The S&P 500 has also surged up by 15.6 percent so far this year, while the narrower Dow has jumped by 6.5 percent.
The yearly advance comes as stocks have rebounded strongly following the sell-off seen in late February and early March as the coronavirus pandemic set in.
Some buying interest may also be generated in reaction to news that the House has approved a measure increasing the size of stimulus checks to $2,000 from $600.
The proposal has the support of President Donald Trump but is likely to face resistance from the Republican-controlled Senate.
Senate Minority Leader Chuck Schumer, D-N.Y., said he will push for a vote on the measure later today, arguing there is “no good reason for Senate Republicans to stand in the way.”
With trading resuming following the long holiday weekend, stocks moved mostly higher during Monday’s session. The advance on the day lifted the major averages to new record closing highs.
The major averages all finished the day firmly in positive territory. The Dow climbed 204.10 points or 0.7 percent to 30,403.97, the Nasdaq rose 94.69 points or 0.7 percent to 12,899.42 and the S&P 500 advanced 32.30 points or 0.9 percent to 3,735.36.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan’s Nikkei 225 Index surged up by 2.7 percent, while Hong Kong’s Hang Seng Index jumped by 1 percent.
The major European markets have also moved to the upside on the day. While the U.K.’s FTSE 100 Index has spiked by 2.1 percent following the long weekend, the French CAC 40 Index is up by 0.4 percent and the German DAX Index is up by 0.1 percent.
In commodities trading, crude oil futures are climbing $0.53 to $48.15 a barrel after sliding $0.61 to $47.62 a barrel on Monday. Meanwhile, after slipping $2.80 to $1,880.40 an ounce in the previous session, gold futures are rising $3.90 to $1,884.30 an ounce.
On the currency front, the U.S. dollar is trading at 103.68 yen compared to the 103.81 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.2254 compared to yesterday’s $1.2216.
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