US futures on Tuesday after Wall Street rout a day earlier
U.S. futures pointed to a partial recovery for the three major stock indexes at Tuesday’s open after the market rout a day earlier.
The Dow Jones Industrial Average futures climbed 109 points, implying a gain of 179.02 for the index at Tuesday’s market open, as of 9:37 p.m. ET Monday. S&P 500 and Nasdaq futures also pointed to gains for the two other major stock indexes.
Stocks had fallen sharply on Monday ahead of the Federal Reserve Bank’s anticipated rate hike this week.
The S&P 500 fell 2 percent to 2,545.94 — its lowest close for 2018. The Dow Jones Industrial Average also plunged 507.53 points to close at 23,592.98, ratcheting up a combined two-day loss of more than 1,000 points.
The Nasdaq Composite saw declines, falling 2.27 percent to end the trading day at 6,753.73.
The Cboe Volatility Index — one of Wall Street’s gauges of market fear — rose above 25 and volume for the stock market was heavier than usual.
The Fed is widely expected to hike its benchmark overnight lending rate for a fourth and final time of 2018 when it concludes a two-day policy meeting on Wednesday. While fears of rising interest rates have spooked markets throughout the year, such concerns have heightened over the past month as inflation and growth expectations recede.
U.S. President Donald Trump took aim at the Fed again on Monday, saying in a tweet that “it is incredible” that the central bank was “even considering yet another interest rate hike” amid the “outside world blowing up around us.”
Trump has openly criticized the Fed, as well as Fed Chairman Jerome Powell, several times in 2018.
— Imagala.com’s Thomas Franck and Michael Sheetz contributed to this report.