Futures on U.S. stock indexes gained on Tuesday after a rocky start to the week on expectations of a fast rate rise by the Federal Reserve, as investors awaited consumer confidence and employment data later in the day.
Related: European stock futures rise as Chinese aid sentiment improves.
Since Fed Chair Jerome Powell’s speech at Jackson Hole last week, in which he said again that the central bank planned to raise interest rates quickly to fight inflation even though the economy was getting worse, the benchmark S&P 500 index has dropped by more than 4%.
Before the opening bell, rate-sensitive banks climbed, with Morgan Stanley (NYSE:MS) and Bank of America (NYSE:BAC) each up more than 1.5%.
The benchmark 10-year Treasury yield finished at 3.07% on Tuesday, after gaining for two consecutive days.
Nvidia (NASDAQ: NVDA) Corp and Tesla (NASDAQ: TSLA) Inc, both of which were under pressure as interest rates rose, each gained 1.9%.
According to data that will be released at 10:00 a.m. ET, the U.S. consumer confidence index is expected to have gone up from 95.7 points in July to 97.9 points in August.
The Job Opportunities and Labor Turnover Survey (JOLTS) report should show that the number of job openings dropped from 10,698 million in June to 10,475 million in July.
Dow e-minis were up 211 points, or 0.66 percent, at 4:46 a.m. ET; S&P 500 e-minis were up 34 points, or 0.84 percent; and Nasdaq 100 e-minis were up 145.5 points, or 1.1 percent.
The CBOE Volatility Index, widely known as Wall Street’s fear gauge, decreased to 25.33 points after reaching a six-week closing high the day before.
Related: U.K. inflation tops 10%; European stock futures increase.
Before the electronics store’s quarterly earnings report came out, shares of Best Buy Co (NYSE:BBY) went up by 0.4%.
