US stock futures rose slightly in night trading Tuesday after the S&P 500 had its first positive day in five years.
Dow futures rose 115 points. The S&P 500 futures rose 0.05% and the Nasdaq 100 futures rose 0.25%.
Better-than-expected wins from Nike and KB Home have lifted sentiment on Wall Street after Tuesday's bell. Nike saw digital sales jump 82% and stock gains 6% after hours. Tesla's shares also rose in expanded trading after Elon Musk said the electric car maker's shipments are expected to rise 30% to 40% in 2020.
On Tuesday, the major averages snapped multi-day loss streaks, all of which closed in the green. The Dow Jones Industrial Average rose 140 points and the S&P 500 rose 1.1%. The tech-heavy Nasdaq Composite was the relative outperformer, falling 1.7% while Amazon was up 5.7%.
"As soon as the S&P 500 hit the official correction zone near a 10% decline yesterday, 'Dip Buyers' emerged and have been evident ever since," said Jim Paulsen, Chief Investment Strategist at The Leuthold Group. opposite CNBC. "Those shoppers armed with cash on hand may be driven less by the" fear of missing out "than by the" opportunity to finally get in "."
Megacap tech stocks, which suffered in September, all closed in positive territory on Tuesday.
"Optimism built up over the course of the day, not only boosting technology and communications scores for day two, but ending up green with eight of the eleven sectors in the S&P 500 index," Paulsen added.
The stock gains were paired by concerns about a surge in coronavirus cases in the UK, coupled with gloomy prospects for a second US Congress stimulus package. UK Prime Minister Boris Johnson on Tuesday announced tightening economic restrictions and public health measures to slow the spread of Covid-19. Johnson said the country was at a "dangerous turning point".
U.S. coronavirus deaths exceeded 200,000 on Tuesday, according to Johns Hopkins University.
Federal Reserve Chairman Jerome Powell reaffirmed on Tuesday that the US economy could weaken in the coming months without further fiscal stimulus from Congress. Powell told the House Financial Services Committee that many economic projections are based on fiscal measures. Powell also assured investors that the central bank would support the economy "as long as possible".
Powell will testify again on Wednesday before the select subcommittee of Congress on the coronavirus crisis.
September remains a poor month for stocks as all three averages drop for three straight weeks. The Dow was down more than 4% in September, and the S&P 500 and Nasdaq Composite were down 5.3% and 6.9% respectively this month.
"We anticipate stocks will rise over the medium term, thanks to the likely development of a successful vaccine, the end of election uncertainty, the passage of new US tax incentives and the continued extraordinary global cash bailout," said Mark Haefele, UBS Global Wealth Management chief investment officer . "The road to & # 39; normal & # 39; is likely to be bumpy given the uncertainty about the coronavirus, the political environment in the US and the tensions between the US and China. We therefore assume that the volatility over the balance sheet of the year will last. "
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