Stock futures rose Tuesday morning after the Nasdaq Composite posted its best daily performance since July.
Nasdaq 100 futures rose 2.13%. Futures tracking the Dow Jones Industrial Average rose 506 points, or 1.67%, while S&P 500 futures rose 1.88%.
Tuesday morning’s strong earnings results were adding fuel to the rally that began Monday. Johnson & Johnson shares were in premarket trading after beating estimates for third-quarter sales and bottom line earnings. increased by 1.7% in Goldman Sachs rose more than 2% as strong trading results beat investment bank earnings and earnings expectations.
Those reports continued strong earnings growth, including beats from Bank of America and Bank of New York Mellon on Monday.
The Dow is off to a strong start to the week, adding about 551 points on Monday. The S&P 500 also rose 2.65% for him. The Nasdaq surged 3.43% as tech stocks led by stocks such as Amazon, Metaplatform and Microsoft rallied. It was the best day for tech stocks since July 27th.
Fears of a recession and overly aggressive central banks have helped propel US markets to the lows of the year in recent weeks, but a strong start to the earnings season means the economy is now weaker than feared. It may indicate that it is in good condition.
“Third and fourth quarter earnings should confirm that fundamentals remain entrenched based on a resilient labor market and the re-opening of COVID-19. Bank rhetoric and interest rates are likely to continue to be tied in and are gradually becoming less negative, so we see equities trending higher year over year. We are exiting given negative sentiment and more reasonable valuations,” Dubravko Lakos-Bujas, head of global macro research at JP Morgan, said in a note to clients.
“However, we anticipate a more difficult earnings situation next year compared to current expectations,” he added.