U.S. stock futures were solidly higher early Tuesday after the equity market kicked off the week with a bounce-back session.
Futures contracts tied to the Dow Jones Industrial Average pointed to an opening gain of more than 250 points. S&P 500 and Nasdaq 100 futures also traded in positive territory.
The move in futures follows a broad-based gain for the market on Monday, which saw the Dow add nearly 230 points and all 11 sectors in the S&P 500 rise. The stock market was coming off its worst week since October.
The positive day for equities came despite another volatile day in parts of the market that have been the focus of retail traders. Shares of GameStop, fresh off a 400% rise last week, slid 30% on Monday and continued to fall during after-hours trading. The price of silver also jumped following increased chatter among traders late last week and over the weekend.
Investors will be met with a slew of earnings on Tuesday, including industry leaders Pfizer and ExxonMobil before the bell. Tech giants Amazon and Alphabet will report after the market close.
The market has appeared to shrug off even some of the stronger quarterly reports this earnings season, and Ally Invest chief investment strategist Lindsey Bell said on “Closing Bell” that those movements may mean the good news was already priced in to stocks after a strong close to 2020 for equities.
“While these reports were not just good, they were better than expected and you would want to see the stocks move a little bit higher, it’s almost understandable that they haven’t,” Bell said.
Investors will also be following stimulus negotiations in Washington, where congressional Republicans made a counteroffer to President Joe Biden’s $1.9 trillion stimulus plan on Sunday.
Biden met with those lawmakers on Monday as congressional Democrats moved toward passing a reconciliation bill without bipartisan support. White House press secretary Jen Psaki described the meeting as “substantive and productive.”
