Stock Market Today: Dow, Nasdaq and S&P 500 set to rally as Treasury yields dip. PPI data on tap.
How are stock-index futures trading:
S&P 500 futures are up 0.5%.
Dow Jones Industrial Average futures are adding 0.3%.
Nasdaq 100 futures are gaining 0.7%.
On Monday, the Dow Jones Industrial Average rose 359 points, or 0.86%, to 42,297, the S&P 500 increased 9 points, or 0.16%, to 5,836, and the Nasdaq Composite dropped 74 points, or 0.38%, to 19,088.
Futures indicate tech stocks may lead the market higher on Tuesday as a slight dip in benchmark Treasury yields revives traders’ risk appetite.
The S&P 500 sits 4.2% below its record high touched in December, having endured a difficult period as the 10-year Treasury yield surged, yesterday climbing to 4.80%, its highest since late October 2023, amid concerns about sticky inflation.
Hopes that President-elect Donald Trump’s tariff proposals may be less draconian than feared – and therefore less inflationary – have stalled the rise in bond yields and encouraged equity bulls early in the new session.
“Stock markets are…in recovery mode, as risk sentiment gets a boost from reports that Donald Trump will implement a gradual programme of tariffs. This has eased inflation fears as we get closer [to] Trump’s inauguration,” said Kathleen Brooks, research director at XTB.
Investors are also looking ahead to Wednesday, when the crucial consumer price index report for December will be published and some of Wall Street’s big banks will kick off the fourth quarter earnings season.