US stocks were strongly indicated early Tuesday, putting them on track for another season of sequential gains in equities, as the Federal Reserve prepares to close its two-day policy meeting and as Investors await product launches for Apple Inc., as well as a fresh round of economic reports.
How are equity benchmarks performing?
Futures for Dow Jones Industrial Average YM00,
Rose 194 points to 28,065, up 0.7%, for the S&P 500 Index ES00,
The Nashdac-100 futures climbed 24.80 points or 0.7% to close at 3,397 on the NQ00.
Advanced 111.50 points or 1%, at 11,378.25.
On Monday, the Dow DJIA,
After trading above the 28,000 limit, it rose 327.69 points or 1.2% to 277993.33. S&P 500 SPX,
Added 42.57 points, or 1.3%, to close at 3,383.54. Nasdaq Composite Comp,
Climbing 203.11 points or 1.7%, ending at 11,056.65, pulling off a two-season streak.
Russell 2000 Index RUT,
Shares of small capitalization rose 39.70 points, or 2.7%, to close at 1,536.97 from the major stock benchmark.
What is driving the market?
According to China’s National Bureau of Statistics, the stock is expected to be helped by China’s positive economic data early Tuesday.
Investors were delighted on Monday with positive news on a vaccine against COVID-19 from AstraZeneca AZN,
And biotech BNTX,
Also from the news of the merger with Nvidia NVDA,
And Oracle ORCL,
And Apple Inc. AAPL will be seen on Tuesday for the product launch,
As well as several IPOs.
The Federal Reserve is slated to begin its policy-setting meeting later today, followed by a news conference on Wednesday and the latest statements from its officials, while central-bank decisions from the Bank of England and the Bank of Japan on Thursday Follow
Mihir Kapadia, CEO of Sun Global Investments, wrote in a note released on Tuesday, “The global market is focused on a two-day Fed meeting that will begin on Tuesday. The policy-setting Federal Open Market Committee meeting will also be the first since the central bank Outlines its new policy of average-inflation targeting.
Kapadia wrote, “While other factors across the continent have helped with this positive momentum, the overwhelming factor that has guided the market is the Fed.” “Investors will be looking for clues about US growth and inflation outlooks and the Fed’s likely reactions,” he said.
Investors are also on the lookout for Snowflake Inc., a cloud-computing company that is set to be listed later today on the New York Stock Exchange and has the support of Warren Buffett. Berkshire Hathaway
On Monday, Snowflake raised the proposed price range from $ 100 to $ 110 for its initial public offering, from $ 75 to $ 85. The company plans to offer 28 million shares to raise to $ 3.08 billion
Separately, Apple Inc. AAPL,
Will be showcasing its first virtual-only product at 1 pm Eastern Time, where Cupertino, California, Tech Behemoth is expected to showcase its latest smartwatches and iPads, which could provide a fresh catalyst for shares of a popular company.
Looking ahead to Thursday, investors are waiting for a report on manufacturing activity in the New York area, the Empire State Manufacturing Index as well as a reading of import and export prices, both due at 8:30 pm Eastern Time. A report on industrial production for August is at 9:15 am
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Which stocks were in focus?
Shares of Oracle corporation
The focus came after reports by the Wall Street Journal that the Trump administration was reviewing companies’ bid to become a “strategic partner” for Tickcock’s US operations, which are owned by China-based ByteDance.