WASHINGTON (dpa-AFX) - Following the sell-off seen in the previous session, stocks may move back to the upside in early trading on Friday. The major index futures are currently pointing to a sharply higher open for the markets, with the Dow futures up by 490 points.
Bargain hunting may contribute to initial strength on Wall Street, as traders look to pick up stocks at relatively reduced levels.
The steep drop on Thursday marked the worst day for the markets since the sell-off seen as worries about the coronavirus began to escalate in March.
Worries about a second wave of coronavirus infections contributed to the sharp losses in the previous session even as Treasury Secretary Steve Mnuchin told CNBC the U.S. 'can't shut down the economy again.'
The sell-off on Thursday largely offset the gains seen earlier this month, although the major averages remain well off their March lows.
On the U.S. economic front, the Labor Department released a report showing a bigger than expected jump in U.S. import prices in the month of May.
The Labor Department said import prices surged up by 1.0 percent in May after plunging by 2.6 percent in April. Economists had expected import prices to increase by 0.6 percent.
The rebound in import prices came as fuel prices spiked by 20.5 percent in May following the 31.0 percent nosedive in the previous month.
The report also showed a rebound in export prices, which climbed by 0.5 percent in May after tumbling by 3.3 percent in April. Export prices were expected to rise by 0.6 percent.
Shortly after the start of trading, the University of Michigan is scheduled to release its preliminary reading on consumer sentiment in the month of June. The consumer sentiment index is expected to rise to 75.0 in June after inching up to 72.3 in May.
Stocks moved sharply lower over the course of the trading session on Thursday, experiencing the biggest one-day drop since March. The Nasdaq pulled back well off Wednesday's record closing high, while the Dow and the S&P 500 closed lower for the third straight session.
The major averages ended the day just off their lows of the session. The Dow plunged 1,861.82 points or 6.9 percent to 25,128.17, the Nasdaq plummeted 527.62 points or 5.3 percent to 9,492.73 and the S&P 500 tumbled 188.04 points or 5.9 percent to 3,002.10.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index slid by 0.8 percent, while Hong Kong's Hang Seng Index fell by 0.7 percent.
Meanwhile, the major European markets have rebounded following yesterday's sell-off. While the French CAC 40 Index has surged up by 1.5 percent, the U.K.'s FTSE 100 Index is up by 1 percent and the German DAX Index is up by 0.6 percent.
In commodities trading, crude oil futures are rising $0.22 to $36.56 a barrel after plunging $3.26 to $36.34 a barrel on Thursday. Meanwhile, after spiking $19.10 to $1,739.80 an ounce in the previous session, gold futures are climbing $6.90 to $1,746.70 an ounce.
On the currency front, the U.S. dollar is trading at 107.38 yen versus the 106.87 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1301 compared to yesterday's $1.1299.
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