U.S. stock futures moved modestly higher on Tuesday evening as investors sought to build a strong rally.
The Dow Jones Industrial Average futures added 49 points, or about 0.2%. The S&P 500 futures rose 0.2%, while the Nasdaq 100 futures rose 0.1%.
The move comes in the wake of recent stock market sell-offs. On Tuesday, the Dow rose 431 points, or 1.3%, while the S&P 500 rose 2% and the Nasdaq Composite rose nearly 2.8%.
The Dow has been down for seven consecutive weeks, but stocks have stabilized in the last three trading sessions.
Last week, the S&P 500 fell on the brink of a bear market – or 20% below its record high – but the index has risen 4% since closing on Thursday.
Stocks and other risks have been weighed down by efforts to reduce inflation through asset inflation and the Federal Reserve’s rate hike, which has raised concerns about a possible recession. Fed Chair Jerome Powell told a Wall Street Journal conference on Tuesday that there would be “no hesitation” about raising rates until inflation was brought under control.
However, some recent economic data, including job reports and retail sales data from April, still show that the US economy is growing.
“There is a big difference between the correction in the equity market and the direct beer market,” said Matt Stocky, a senior portfolio manager at Northwestern Mutual Wealth Management. “The bear market difference is almost always associated with a kind of recession in the macroeconomic environment, or at least an inevitable one on the forecast horizon for the next six to 12 months. For us, we’re sitting here today, we just don’t see.”
A busy week of retail earnings continued Wednesday, with Target and Low reporting results just before the opening hour.
Investors will also get an updated look at the housing market, where housing start data and April building permits will expire on Friday morning.