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If
gains hold till the open, the three major stock indexes will
snap a five-day losing streak, with rate-sensitive growth shares
leading the advance in premarket trading.
Amazon.com Inc, Apple Inc, Microsoft Corp, Meta Platforms Inc
and Tesla Inc, rose between 1.1% and 2.1% as the U.S. 10-year
Treasury yield eased from more than a decade high. [US/]
Oil stocks got a shot in the arm after a sharp recovery in crude
prices, with Exxon and Chevron up 1.4% each.
At 6:59 a.m. ET, Dow e-minis were up 273 points, or 0.93%, S&P
500 e-minis were up 42.25 points, or 1.15%, and Nasdaq 100
e-minis were up 152.5 points, or 1.35%.
Concerns about corporate profits coming under pressure from
soaring prices, an economic downturn and higher interest rates
have roiled Wall Street in the past two weeks, pushing the S&P
500 to new closing lows for the year on Monday.
Analysts have cut their S&P 500 earnings estimates for the third
and fourth quarters, and for all of 2022. For the third quarter,
overall S&P 500 earnings are seen rising just 4.6%
year-over-year, compared with the 11.1% growth expected at the
start of July.
U.S. Federal Reserve officials on Monday sloughed off rising
volatility in global markets, from slumping U.S. stocks to
currency turbulence abroad, and said their priority remained
controlling domestic inflation.
Chicago Fed President Charles Evans said the central bank will
need to raise interest rates by at least another percentage
point this year, highlighting the Fed's combative stance to
quash too-high inflation.
Analysts at Wells Fargo now see the U.S. central bank taking its
target range for the Fed funds rate to 4.75%-5.00% by the first
quarter of 2023.
Later in the day, investors will be watching for August durable
goods orders, as well as consumer confidence data for the month.
(Reporting by Susan Mathew, Ankika Biswas and Shreyashi Sanyal
in Bengaluru; Editing by Anil D'Silva and Shounak Dasgupta)
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