WASHINGTON (dpa-AFX) - Following the massive sell-off seen in the previous session, stocks are likely to see a notable rebound in early trading on Tuesday. The major index futures are currently pointing to a sharply higher open for the markets, with the Dow futures up by 703 points.
Bargain hunting may contribute to initial strength on Wall Street after the Dow and the S&P 500 experienced their biggest percentage drops since the 2008 financial crisis on Monday.
Traders may look to pick up stocks at reduced levels following the sharp drop seen in recent weeks, which has dragged the Dow down to its lowest levels in over a year.
Buying interest is also likely to be generated in reaction to President Donald Trump's pledge to provide 'very substantial relief' amid the economic fallout from the coronavirus outbreak.
Trump told reporters Monday evening that he would be meeting with House and Senate Republicans today to discuss a possible payroll tax cut or other stimulus measures.
The president said he would also talk with GOP lawmakers about getting help for hourly wage earners, hinting at providing paid leave to those affected by the coronavirus.
'We're going to be working with companies and small companies, large companies - a lot of companies - so that they don't get penalized for something that's not their fault,' Trump said. 'It's not their fault, it's not our country's fault.'
'This was something that we were thrown into and we're going to handle it, and we have been handling it very well,' he added.
Trump indicated he plans to hold another press conference later today to discuss the economic steps being taken, although administration officials recently told CNBC the White House is not ready to roll out specific economic proposals.
After moving sharply lower at the start of trading on Monday, stocks saw substantial weakness throughout the session. With the steep drop on the day, the Dow tumbled to its lowest closing level in over a year.
In its worst day since 2008, the Dow plummeted 2,013.76 points or 7.8 percent to 23,851.02. The Nasdaq plunged 624.94 points or 7.3 percent to 7,950.68 and the S&P 500 tanked 225.81 points or 7.6 percent to 2,746.56.
Overseas, most stock markets across the Asia-Pacific region showed a notable turnaround over the course of the trading session on Tuesday. Japan's Nikkei 225 Index advanced by 0.9 percent, while China's Shanghai Composite Index surged up by 1.8 percent.
The major European markets have also shown strong moves back to the upside on the day. While the German DAX Index has jumped by 2.2 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index are up by 2.6 percent and 2.7 percent, respectively.
In commodities trading, crude oil futures are spiking $2.60 to $33.73 a barrel after plummeting $10.15 to $31.13 a barrel on Monday. Meanwhile, after rising $3.30 to $1,675.70 an ounce in the previous session, gold futures are sliding $11.30 to $1,664.40 an ounce.
On the currency front, the U.S. dollar is trading at 104.21 yen compared to the 102.36 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1377 compared to yesterday's $1.1450.
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