U.S. Stocks May Extend Rebound In Early Trading
(RTTNews) - After turning higher over the course of the previous session, stocks may see further upside in early trading on Wednesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 191 points.
The upward momentum on Wall Street comes as traders may look to continue to pick up stocks at relatively reduced levels following recent weakness.
Buying interest may also be generated in reaction to comments from President Donald Trump indicating the U.S. would not follow the U.K.'s lead and implement a second round of lockdowns.
"The U.K. just shut down again. They just announced that they're going to do a shutdown, and we're not going to be doing that," Trump told Fox 2 Detroit on Tuesday. "We understand the disease, we understand how to handle it."
In other coronavirus-related news, Johnson & Johnson (JNJ) announced it has begun a phase 3 trial of its coronavirus vaccine candidate.
Despite worries about a surge in coronavirus cases and fresh lockdown measures in parts of Europe as well as continued uncertainty about a new relief package in the U.S., stocks closed on a firm note on Wall Street on Tuesday.
The Dow ended with a gain of 140.48 points or 0.5 percent at 27,288.18, about 300 points off the session's low. The S&P 500 jumped 34.51 points or 1.1 percent to 3,315.57, while the Nasdaq surged up 184.84 points or 1.7 percent to 10,963.64.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday, although Japan's Nikkei 225 Index bucked the uptrend and edged down by 0.1 percent. China's Shanghai Composite Index rose by 0.2 percent, while Australia's S&P/ASX 200 Index spiked by 2.4 percent.
The major European markets have also shown strong moves to the upside on the day. While the U.K.'s FTSE 100 Index has surged up by 2.1 percent, the French CAC 40 Index is up by 1.5 percent and the German DAX Index is up by 1.4 percent.
In commodities trading, crude oil futures are rising $0.20 to $40 a barrel after climbing $0.26 to $39.80 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $1,886, down $21.60 compared to the previous session's close of $1,907.60. On Tuesday, gold fell $3.
On the currency front, the U.S. dollar is trading at 105.16 yen compared to the 104.93 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.1691 compared to yesterday's $1.1708.