(RTTNews) – Following the long holiday weekend, stocks are likely to resume their recent upward trend in early trading on Tuesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 150 points.
The markets are likely to benefit from recent upward momentum, as traders remain optimistic about additional stimulus from Washington.
Recent signs indicating the coronavirus crisis is easing following a recent surge is also likely to generate buying interest as countries around the world continue to ramp up vaccine rollouts.
The positive sentiment also comes following last Friday’s drop by the CBOE Market Volatility Index, which closed below 20 for the first time in nearly a year.
The decrease by the closely watched volatility index suggests there is reduced fear in the markets following the spike seen in reaction to speculative trading in stocks like GameStop (GME).
Traders may be less worried about a substantial pullback by the markets even as some analysts continue to warn the markets are overbought.
In U.S. economic news, the Federal Reserve Bank of New York released a report showing New York manufacturing activity grew at its fastest pace in months in February.
The New York Fed said its general business conditions index climbed to 12.1 in February from 3.5 in January, with a positive reading indicating growth in regional manufacturing activity. Economists had expected the index to rise to 6.0.
With the much bigger than expected increase, the general business conditions index reached its highest level since hitting 17.2 last July.
A slew of economic data is due to be released in the comings days, including reports on retail sales, industrial production, housing starts, and existing home sales.
Stocks turned in a lackluster performance for much of the trading day on Friday but moved to the upside late in the session. The late-day advance lifted the major averages to new record closing highs.
The Dow underperformed its counterparts but still closed modestly higher, inching up 27.70 points or 0.1 percent to 31,458.40. The Nasdaq climbed 69.70 points or 0.5 percent to 14,095.47 and the S&P 500 rose 18.45 points or 0.5 percent at 3,934.83.
The major averages showed a lack of direction for much of the week but still moved notably higher. The Nasdaq surged up by 1.7 percent, while the S&P 500 and the Dow jumped by 1.2 percent and 1 percent, respectively.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan’s Nikkei 225 Index jumped by 1.3 percent, while Hong Kong’s Hang Seng Index soared by 1.9 percent.
Meanwhile, the major European markets are turning in a lackluster performance on the day. While the U.K.’s FTSE 100 Index is up by 0.2 percent, the German DAX Index and the French CAC 40 Index are both just below the unchanged line.
In commodities trading, crude oil futures are inching up $0.14 to $59.61 a barrel after jumping $1.23 to $59.47 a barrel last Friday. Meanwhile, after falling $3.60 to $1,823.20 an ounce in the previous session, gold futures are plunging $22.90 to $1,800.30 an ounce.
On the currency front, the U.S. dollar is trading at 105.66 yen versus the 105.38 yen it fetched on Monday. Against the euro, the dollar is trading at $1.2114 compared to yesterday’s $1.2129.