Stock futures surged Tuesday as Wall Street aimed to build on a sharp rally seen in the previous session.
Futures for the Dow Jones Industrial Average were up 388 points, or 1.3%. S&P 500 futures increased 1.6%, and Nasdaq 100 futures were up 2%.
Monday brought a respite from slides seen throughout September and the prior quarter. The Dow jumped nearly 2.7%, or about 765 points. It was its best day since June 24. The S&P 500 advanced about 2.6% in its best day since July 27. The Nasdaq Composite increased roughly 2.3%.
Meanwhile, the yield on the 10-year U.S. Treasury note extended its decline and was trading at about 3.583%, down from more than 4% at one point last week.
“After falling more than 9% in September and extending its year-to-date decline to nearly 25% as of Friday’s close, we think the S&P 500 was looking oversold,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “In addition, some of last week’s selling pressure may have been driven by quarter-end rebalancing, which has now ended.”
“With sentiment toward equities already very weak, periodic rebounds are to be expected,” he added. “But markets are likely to stay volatile in the near term, driven primarily by expectations around inflation and policy rates.”
Investors will watch for new data Tuesday from the Job Openings and Labor Turnover Survey administered by the Bureau of Labor Statistics.