WASHINGTON (dpa-AFX) - Following the sell-off seen last Friday, stocks are likely to move back to the upside in early trading on Monday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 154 points.
Bargain hunting may contribute to initial strength on Wall Street, with traders picking up stocks at reduced levels on the heels of the steep drop seen in the previous session.
The sharp decline seen last Friday dragged the Dow down to its lowest closing level in well over a month, while the Nasdaq and the S&P 500 also pulled back well off their recent record highs.
Buying interest may be somewhat subdued, however, as some traders may be reluctant to get back into the markets amid lingering concerns about the coronavirus outbreak.
The coronavirus has now killed more people in mainland China than the SARS outbreak in 2003, adding to worries about the economic impact of the rapid spread of the disease.
Not long after the start of trading, the Institute for Supply Management is scheduled to release its report on manufacturing activity in the month of January.
The purchasing managers index is expected to rise to 48.5 in January from 47.2 in December, although a reading below 50 would still indicate a contraction in manufacturing activity.
The Commerce Department is also due to release its report on construction spending in the month of December. Construction is expected to increase by 0.5 percent.
Stocks moved sharply lower over the course of the trading day on Friday, more than offsetting the modest gains posted in the previous session. With the steep drop on the day, the Dow fell to its lowest closing level in well over a month.
The major averages climbed off their worst levels going into the close but remained firmly negative. The Dow plummeted 603.41 points or 2.1 percent to 28,256.03, the Nasdaq tumbled 148.00 points or 1.6 percent to 9,150.94 and the S&P 500 plunged 58.14 points or 1.8 percent to 3,225.52.
For the week, the Nasdaq slumped by 1.8 percent, while the S&P 500 and the Dow dove by 2.1 percent and 2.5 percent, respectively.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Monday, with China's Shanghai Composite Index plunging by 7.7 percent as trading resumed following the extended Lunar New Year holidays. Japan's Nikkei 225 Index slumped by 1 percent.
Meanwhile, the major European markets have moved to the upside on the day. While the German DAX Index has risen by 0.3 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index are both up by 0.4 percent.
In commodities trading, crude oil futures are slipping $0.08 to $51.48 a barrel after sliding $0.58 to $51.56 a barrel last Friday. Meanwhile, an ounce of gold is trading at $1,581.40, down $6.50 from the previous session's close of $1,587.90. On Friday, gold dipped $1.30.
On the currency front, the U.S. dollar is trading at 108.56 yen compared to the 108.35 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is valued at $1.1063 compared to last Friday's $1.1093.
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