US stock futures bounced back on Tuesday after major indexes took a nosedive on Monday amid concerns about the Delta variant. Futures tied to the Dow Jones Industrial Average rose 0.68% while S&P 500 futures rose 0.53%. Nasdaq 100 futures advanced 0.5% indicating a rise in the index and technology stocks.
US Economic Concerns
Dow Jones index slipped more than 700 points on Monday amid anxiety over the Delta coronavirus variant. This was the index’s sharpest dive since October. The surging cases of coronavirus in many parts of the world despite high vaccination rollout, have dialed down investors’ expectations on economic growth.
Investors are concerned about a slowdown in economic growth due to the rampant cases of coronavirus. This could lead to the adoption of strict lockdown restrictions in affected areas thus hampering businesses. According to Candice Bangsund, a portfolio manager at Fiera Capital,
“The emergence of this more highly transmissible Delta variant…has brought into question the sustainability of this reopening and the recovery…”
US Treasury yields edged lower extending their losses on Tuesday. The yield on the benchmark 10-year Treasury note slipped to 1.171%. The yield on the 30-year Treasury bond slightly fell to 1.812%. the 10-year yield fell to a five-month low on Monday amid inflation and Delta variant fears.
The US building permits for June are yet to be released later in the day. The number of new housing construction projects started in June will also be released later today.
Dow Jones Market Movers
IBM was the best performer in the premarket trade. The computer hardware company gained 3.78% in its stock earnings. The company reported strong gains in its revenue for the second quarter this year. The company’s revenue rose to $18.7 billion while its earnings rose to $2.33 per share.
Dow Inc was up 1.92% ahead of its earnings report. The commodity chemical company will report its earnings for the second quarter of the fiscal year later in the week. The company’s earnings are expected to grow.
Caterpillar Inc was also among the top performers in the Dow Jones index. The construction machinery and equipment company retreated from its five-day losing streak.
Visa Inc is a financial services company. The company’s stock was up in premarket trade after falling on Monday.