Futures of U.S. stocks rose slightly in trading overnight on Tuesday, following a sharp rise in the market as Reddit’s trading mania continued to unravel.
Dow futures rose 60 points. The S&P 500 futures gained 0.4% and the Nasdaq 100 futures rose 0.4%.
The strong gains from Amazon and Alphabet helped the futures. Amazon reported gains nearly double Wall Street estimates; however, the stock move was dampened by the news that Jeff Bezos would cease to be CEO.
Alphabet shares gained 6% in trading after hours after the tech giant reported 23% revenue growth and exceeded earnings estimates.
Shares met on Tuesday the second day, with the Dow Jones Industrial Average gaining more than 475 points for its best day since November. Investors repurchased shares after the Reddit-driven stock that shook markets last week. The Dow has risen 2.35% this week.
The S&P 500 was up 1.4% and the Nasdaq Composite was up more than 1.5%.
After a meteoric, albeit seemingly synthetic, rise from GameStop last week caused by a small compression, stocks have cratered more than 70% this week. Other Reddit operations have also returned to Earth amid the trade restrictions of major brokers.
“The best way to describe current stock market action is to ‘reverse the Reddit revolution,’ Jim Paulsen, chief investment strategist at the Leuthold Group, told CNBC.” What went up with GameStop fell with GameStop. ” .
“From noon on January 28 to the end of January 29, cyclical cycles, including technology, were hit as the defensive sectors outperformed. Over the past two days, and especially today, it was reversed,” he added. Paulsen.
Investors are also overseeing negotiations in Washington around another stimulus package. President Joe Biden met Monday with the 10 Republican senators to discuss a smaller alternative aid proposal to his $ 1.9 trillion package.
The earnings season continues Wednesday with AbbVie, Biogen, Boston Scientific, GlaxoSmithKline and Humana reporting ahead of the opening bell.
Chipmaker Qualcomm, eBay, PayPal and Yum China report gains after the market closes on Wednesday.
January private payroll data is released at 8:15 a.m. ADP. Economists surveyed by Dow Jones expect private sector employment to grow 50,000 in January, compared to a loss of 123,000 in December.
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