U.S. stock futures edged up slightly on Tuesday evening as investors looked to continue their solid gains.
Dow Jones Industrial Average futures added 43 points, or about 0.1%. S&P 500 and Nasdaq 100 futures were up about 0.1% each.
The move in futures comes as the recent selloff in the stock market appears to have stalled. On Tuesday, the Dow rose 431 points, or 1.3%, while the S&P 500 added 2% and the Nasdaq Composite rose almost 2.8%.
The Dow has been down for seven consecutive weeks, but stocks have stabilized over the past three trading sessions.
The S&P 500 fell to the brink of a bear market last week – or 20% below its all-time high – but the index is now up 4% since Thursday’s close.
Stocks and other risky assets have been pressured by inflation and the Federal Reserve’s attempt to dampen price increases by raising rates, raising fears of a potential recession. Fed Chairman Jerome Powell told the Wall Street Journal on Tuesday that there would be “no hesitation” in raising rates until inflation is under control.
However, some recent economic data, including the jobs report and retail sales data for April, continues to show growth in the US economy.
“There is a big difference between stock market corrections and outright bear markets,” said Matt Stuckey, senior portfolio manager at Northwestern Mutual Wealth Management. “The difference is that bear markets are almost always associated with some kind of recession in the macroeconomic environment, or at least the imminent outlook over the next six to twelve months. For us sitting here today, we just don’t notice it.”
A busy week of retail earnings continues on Wednesday, with Target and Lowe reporting ahead of the opening bell.
Investors will also receive an update on the housing market, with housing starts and building permits for April due out Friday morning.