(RTTNews) - Stocks may move to the upside in early trading on Tuesday, regaining ground after coming under pressure 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 0.5 percent.
Early buying interest may be generated in reaction to a sharp pullback by the price of crude oil, as U.S. crude oil futures are plunging by more than 3 percent after spiking by more than 4 percent on Monday.
The substantial decrease by the price of crude oil comes despite lingering concerns about escalating tensions in the Middle East.
In an interview with Fox News on Monday, President Donald Trump warned Iran would be "blown off the face of the earth" if it targeted U.S. ships safeguarding commercial traffic through the Strait of Hormuz.
Meanwhile, Secretary of War Pete Hegseth said Tuesday that "two U.S. commercial ships, along with American destroyers, have already safely transited the strait, showing the lane is clear."
A positive reaction to some of the latest earnings news may also contribute to strength on Wall Street, with U.S. -listed shares of Anheuser-Busch InBev surging by 6.6 percent in pre-market trading.
The spike by the Budweiser parent comes after the company reported first quarter results that exceeded analyst estimates on both the top and bottom lines.
Shares of Pfizer (PFE) are also seeing notable pre-market strength after the drug giant reported better than expected first quarter results.
Shortly after the start of trading, the Institute for Supply Management is scheduled to release its report on service sector activity in the month of April.
The services PMI is expected to edge down to 53.7 in April from 54.0 in March, although a reading above 50 would still indicate growth.
After showing a lack of direction early in the session, stocks moved mostly lower over the course of the trading day on Monday. The major averages all moved to the downside on the day, with the Dow showing a notable decline.
The Dow slumped 557.37 points or 1.1 percent to 48,941.90, the S&P 500 fell 29.37 points or 0.4 percent to 7,200.75 and the Nasdaq dipped 46.64 points or 0.2 percent to 25,067.80.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower, with several major markets closed for holidays. Hong Kong's Hang Seng Index slid by 0.8 percent, while Australia's S&P/ASX 200 Index slipped by 0.2 percent.
Meanwhile, the major European markets are turning in a mixed performance on the day. While the U.K.'s FTSE 100 Index is down by 1.3 percent, the French CAC 40 Index is up by 0.8 percent and the German DAX Index is up by 1.6 percent.
In commodities trading, crude oil futures are plunging $3.45 to $102.97 a barrel after spiking $4.48 to $106.42 a barrel on Monday. Meanwhile, after plunging $111.20 to $4,533.30 ounce in the previous session, gold futures are jumping $44.20 to $4,577.50 an ounce.
On the currency front, the U.S. dollar is trading at 157.74 yen compared to the 157.22 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is trading at $1.1692 compared to yesterday's $1.1690.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
