(RTTNews) - Stocks are likely to move to the upside in early trading on Wednesday, extending the substantial rebound seen over the course of the previous session. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.6 percent.
Optimism about an end to the U.S. war with Iran is likely to contribute to continued strength on Wall Street following the latest comments by President Donald Trump.
Speaking to reporters at the White House on Tuesday, Trump said he expects U.S. military forces to leave Iran in "two or three weeks."
Trump argued that the U.S. does not have to reach a negotiated settlement to end the war with Iran, calling a deal "irrelevant" because "everything's been bombed out."
The White House subsequently revealed Trump will deliver an address to the nation at 9 pm ET tonight to provide an important update on Iran.
The price of crude oil is extending yesterday's pullback following Trump's comments, with U.S. crude oil futures falling below $100 a barrel.
In U.S. economic news, payroll processor ADP released a report showing private sector employment in the U.S. increased by more than expected in the month of March.
ADP said private sector employment grew by 62,000 jobs in March after climbing by an upwardly revised 66,000 jobs in February.
Economists had expected private sector employment to rise by 40,000 jobs compared to the addition of 63,000 jobs originally reported for the previous month.
A separate report released by the Commerce Department showed retail sales in the U.S. increased by slightly more than expected in the month of February.
The Commerce Department said retail sales climbed by 0.6 percent in February after edging down by a revised 0.1 percent in January.
Economists had expected retail sales to rise by 0.5 percent compared to the 0.2 percent dip originally reported for the previous month.
Shortly after the start of trading, the Institute for Supply Management is due to release its report on manufacturing activity in the month of March.
The manufacturing PMI is expected to edge down to 52.3 in March from 52.4 in February, but a reading above 50 would still indicate growth.
After moving sharply higher early in the session, stocks saw further upside over the course of the trading day on Tuesday. The major averages all showed strong upward moves, with the tech-heavy Nasdaq leading the way higher.
The major averages ended the day not far off their highs of the session. The Nasdaq soared 795.99 points or 3.8 percent to 21,590.62, the S&P 500 spiked 184.80 points or 2.9 percent to 6,528.52 and the Dow surged 1,125.37 points or 2.5 percent to 46,341.51.
Despite the rally on the day, the major averages all posted steep losses for the month of March. The Dow plummeted by 5.4 percent, the S&P 500 plunged by 5.1 percent and the Nasdaq tumbled by 4.8 percent.
In overseas trading, stock markets across the Asia-Pacific region moved sharply higher during trading on Wednesday. Japan's Nikkei 225 Index soared by 5.2 percent, while Hong Kong's Hang Seng Index shot up by 2 percent.
The major European markets have also shown strong moves to the upside on the day. While the German DAX Index is up by 2.5 percent, the French CAC 40 Index is up by 1.9 percent and the U.K.'s FTSE 100 Index is up by 1.8 percent.
In commodities trading, crude oil futures are tumbling $1.94 to $99.44 a barrel after slumping $1.50 to $101.38 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $4,741.40, up $93.80 compared to the previous session's close of $4,647.60. On Tuesday, gold jumped $121.60.
On the currency front, the U.S. dollar is trading at 158.50 yen compared to the 158.71 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1602 compared to yesterday's $1.1552.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
