WASHINGTON (dpa-AFX) - After the terrible battering they took in the previous session, shares look headed for a positive opening on Wall Street on Wednesday, tracking higher stock futures.
However, stocks may find it tough to hold at higher levels as investors are likely to stay cautious due to lingering concerns about growth and the widening rift between the U.S. President and the Federal Reserve on the issue of rate hikes.
The market suffered a severe setback on Christmas Eve, with the Dow plummeting 2.9 percent and S&P 500 falling 2.7%. The Nasdaq ended 2.2% down. The market was closed for Christmas on Tuesday.
Worries about global economic growth, rising concerns about U.S.-China trade tensions, the impact of a partial U.S. government shutdown and President Donald Trump's adverse remarks about the Federal Reserve's monetary policy stance, all contributed to the sell-off on Wall Street earlier this week.
The partial shutdown is likely to continue into the New Year following President Donald Trump and Democratic lawmakers differing on the issue of funding for the president's controversial border wall.
The Senate adjourned Saturday without a deal to re-open the shut down parts of the federal government and is not expected to reconvene until Thursday, December 27th.
Trump said that there was 'nothing new' in progress made to resolve the government shutdown.
Meanwhile, Trump expressed his optimism on Tuesday that stocks would bounce back, saying he has great confidence in U.S. companies.
About the Fed's interest rate hikes, Trump said 'they're raising interest rates too fast because they think the economy is so good. But I think that they will get it pretty soon.'
Crude oil futures for February were gaining $0.81, or 1.90%, at $43.34 a barrel, recovering from 18-month lows.
Natuarl gas futures for February were down $0.101, or 3.16%, at $3.322 per million btu.
On the economic front, a report on home prices from S&P/Case-Shiller is due for release at 9:00 AM ET.
At 10 AM ET, the Richmond Fed will release its monthly report on manufacturing activity.
Asian markets, with the exception of those in Japan and India, ended lower on Wednesday, due to growth concerns.
Most of the markets in Europe are closed for Boxing Day holiday. In the few markets where trading is on, the activity is quite subdued.
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