WASHINGTON (dpa-AFX) - Following the pullback seen over the two previous sessions, stocks may move back to the upside in early trading on Wednesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 261 points.
Early buying interest may be generated in reaction to signs of stabilization in oil prices following the historic drop seen earlier this week.
The front month crude oil contract turned negative for the first time in history on Monday, and later month futures showed another substantial move to the downside on Tuesday.
However, crude oil for June delivery has moved modestly higher over the course of this morning after falling near $10 a barrel overnight.
The markets may also benefit from news that the Senate has passed a new bill to provide funding for hospitals and small businesses and expand coronavirus testing.
The $484 billion aid package was approved unanimously by the Senate and now heads to the House, which could approve the bill as soon as Thursday.
President Donald Trump has said he will sign the bill and then plans to begin discussions on additional legislation to provide fiscal relief for states and local governments, increase infrastructure spending, provide tax incentives for restaurants and entertainment businesses and cut payroll taxes.
Stocks moved sharply lower over the course of the trading day on Tuesday, extending the pullback seen in the previous session. The major averages continued to give back ground after ending last Friday's trading at their best closing levels in over a month.
The major averages all posted steep losses on the day. The Dow tumbled 631.56 points or 2.7 percent to 23,018.88, the Nasdaq plunged 297.50 points or 3.5 percent to 8,263.23 and the S&P 500 plummeted 86.60 points or 3.1 percent to 2,736.56.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan's Nikkei 225 Index slid by 0.7 percent, while China's Shanghai Composite Index climbed by 0.6 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the U.K.'s FTSE 100 Index has surged up by 1.8 percent, the German DAX Index is up by 0.9 percent and the French CAC 40 Index is up by 0.7 percent.
In commodities trading, crude oil futures are inching up $0.12 to $11.69 a barrel after plummeting $8.86 to $11.57 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $1,717.30, up $29.50 compared to the previous session's close of $1,687.80. On Tuesday, gold plunged $23.40.
On the currency front, the U.S. dollar is trading at 107.73 yen compared to the 107.80 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0872 compared to yesterday's $1.0858.
Copyright RTT News/dpa-AFX
© 2020 AFX News
