US pre-open: Futures point to rebound after Tuesday's selloff
US stock futures pointed to a slight rebound on Wednesday, as commodities staged a timid recovery.
Dow Jones I.A.
38,790.43
04:30 15/10/20
Michael Kors Holdings Ltd Com Npv
n/a
11:10 18/03/24
Nasdaq 100
17,985.01
12:15 18/03/24
Tiffany & Co.
$0.00
14:25 11/03/24
The Dow Jones Industrial Average was expected to open up 15 points, while the S&P 500 and the Nasdaq were set to begin the session two and three points higher respectively.
Wall Street recorded a sharp selloff on Tuesday, with stocks and oil prices plunging, while the dollar continued to surge ahead.
On Wednesday, the greenback reverses early losses to gain 0.49% against the yen, although it was broadly flat against both pound and euro.
“Barring a change in Fed stance, I think the longer term trend in the dollar will now resume and we remain on course for euro and dollar to achieve parity in the fourth quarter,” said Oanda’s senior market analyst Craig Erlam.
Oil prices edged slightly higher, with West Texas Intermediate climbing 0.46% higher to $58.30 a barrel, while Brent crude gained 0.20% to $63.85 a barrel.
On Friday, the dollar rallied after comments from the Federal Reserve chairwoman, Janet Yellen, fuelled speculation that an interest rate hike this year might still be possible.
However, Stanley Fischer, the Fed’s vice president, said on Tuesday that the Fed will be wary of global growth when deciding its own monetary policy.
“The US is edging towards an interest rate hike while over two dozen central banks around the world have cut rates, and this gives the doves in the Fed more wiggle room,” said David Madden, IG’s market analyst.
In company news, property development group Toll Brothers edged 0.43% higher in pre-market trading after saying early on Wednesday that its second quarter earnings rose 4%.
Jeweller and specialty retailer Tiffany & Co surged 6.40% ahead of the bell after reporting better-than-expected results and outlook.
Luxury lifestyle group Michael Kors tumbled 9.72% ahead of the bell after its fourth quarter sales and revenue missed estimates, while Hormel Foods gained 4.66% after announcing late on Tuesday it will buy Applegate Farms for approximately $775m.
Elsewhere, European stocks gained ground after Tuesday’s selloff and Asia markets closed mixed, while there were no major economic releases ahead.