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Stock futures inch higher after Tuesday’s broad rebound

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An American trader is working on the New York Stock Exchange’s trading floor in Manhattan. This was August 5, 2021.

Reuters| Reuters

Overnight trading saw stock futures rise after the market recovered from Tuesday’s sell-off triggered by tech.

Futures on Dow Jones Industrial Average increased 55 points (or 0.2%) S&P 500 futures ticked up 0.1% and Nasdaq 100 futures added 0.1%.

The market saw a broad rally during Tuesday’s regular session with nine out of 11 S&P 500 sectors closing positive. Dow rose 312 points to 0.92%. The S&P 500 rose 1.05% and the Nasdaq Composite rallied 1.25%. 

After being downgraded in the previous trading session, mega-cap tech stocks closed Tuesday higher. Facebook was able to remain focused after a long period of uncertainty. outageAnd claims by a whistleblowerThe company is aware that it’s causing harm to people.

The financial sector finished Tuesday as the best performing segment of the S&P 500, up 1.78%. Stocks rose also in sectors that work towards recovering economies. As oil prices rose, energy names were up. The stock market for retail, cruise, and airline stocks also grew.

An optimistic outlook for the economy’s recovery was helped by Tuesday’s better than expected manufacturing data. This was 0.2 more than the expected improvement in September’s service purchasing manager index from Institute for Supply Management. It rose to 61.9, an increase of 61.7 since August.

Chris Hussey of Goldman Sachs stated Tuesday, “Investors are leaning into risk in the wake of another strong business sense survey that might suggest that the Delta driven growth slowdown late summer is already over,” in a note.

Levi Strauss, a denim retailer, and Constellation Brands, an alcoholic beverage company are scheduled to release quarterly earnings on Wednesday.

Tuesday will see the release of ADP’s private payrolls reports for September. The closely-watched nonfarm payrolls report September will be released Friday.

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