Daily Outlook

Dow futures rise nearly 200 points as Wall Street looks set to continue Tuesday rally

U.S. stock futures recovered from an earlier dip in overnight trading and pointed to continued gains at the open on Wednesday. Optimism about the reopening of the economy and a possible coronavirus vaccine continued, despite concerns about U.S.-China tensions.

Recent hopes for a return to normal consumer habits has pushed the Dow Jones Industrial Average and S&P 500 to briefly touch key market levels for the first time since early March; however, a escalation of U.S.-Chinese tensions has capped gains.

Dow futures rose 183 points, pointing to an implied Wednesday opening gain of about 242 points. The S&P 500 and Nasdaq futures also pointed to modest gains at the Wednesday open.

Stocks started the holiday-shortened week off strong. On Tuesday, the Dow Jones Industrial Average climbed more than 500 points, or 2.2%. The 30-stock average briefly traded above 25,000, a level not seen since early March.

The S&P 500 climbed 1.2%, briefly breaching the 3,000 level for the first time since March 5. Many Wall Street analysts believe breaking above this level is a bullish long-term trend. The Nasdaq Composite rose 0.2%.

Nine of eleven S&P 500 sectors were positive in Tuesday’s session, led by banks, which are getting a boost the economy reopening. Citigroup rose more than 9% and JPMorgan gained 7% after CEO Jamie Dimon said the bank is “very valuable” at current prices.

Dow futures rise nearly 200 points as Wall Street looks set to continue Tuesday rally, CNBC, May 27

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