Tuesday April 3rd

3-04-2018

Stocks set for rebound after Dow drops more than 450 points to start off quarter

U.S. stock index futures were set to open higher on Tuesday as investors tired to rebound from steep declines seen in the previous session. At around 7:50 a.m. ET, Dow Jones industrial average futures rose 96 points, indicating a gain of 28.81 points at the open. The Nasdaq 100 and the S&P 500 futures meantime indicated a positive open for their respective markets. Facebook and Google-parent Alphabet both rose 0.5 percent in the premarket after suffering strong losses. Netflix also gained 0.2 percent while Amazon fell 0.5 percent, adding to the losses seen on Monday. The moves before the bell come after Wall Street tumbled on the first trading day of April and the second quarter. On Monday, the Dow sank more than 450 points, with the 30-stock index hitting a new low for the year. The S&P 500 and Nasdaq entered correction territory during the session. Reasons why markets were under severe pressure Monday revolved around the possibility of a trade war, and fears surrounding the tech industry. Over the weekend President Donald Trump tweeted that e-commerce giant Amazon was scamming the U.S. Postal Service, and that the service was losing "billions of dollars" because it delivered packages for the group. On Monday, shares of Amazon sank more than 5 percent, while other technology stocks such as Facebook, Alphabet and Netflix, also posted sharp declines. In March, shares of Facebook came under severe pressure following concerns on how the social media giant handles the data of people who use the platform. Meantime, concerns surrounding global trade continue to rumble on. China recently announced that it would be implementing new tariffs on 128 U.S. products, including fruit and meat, in response to the U.S.' own set of levies on steel and aluminum. Consequently, markets in Asia and Europe came under pressure Tuesday. Japan's Nikkei 225 declined 0.45 percent, or 96.29 points, to close at 21,292.29, but was off its session lows. Over in South Korea, the Kospi closed off by 0.07 percent at 2,442.43 as technology stocks weighed on the broader index, taking cues from the declines on Wall Street. The Hang Seng Index reversed early losses to trade higher by 0.11 percent by 3:00 p.m. HK/SIN, with the index holding above the 30,000 mark ahead of the market close. On the mainland, the Shanghai composite lost 0.85 percent to end at 3,136.44 and the Shenzhen composite eased 0.78 percent to finish at 1,842.23. Oil prices inched up on Tuesday as rising Russian output and expectations of a reduction in Saudi Arabian crude prices were offset by a potential slowdown in U.S. production. U.S. West Texas Intermediate crude futures were at $63.13 a barrel at 0434 GMT, up 11 cents from their previous settlement. Brent crude futures rose to $67.80 per barrel, up 16 cents after falling by 2.5 percent on Monday. Gold prices edged lower on Tuesday, having surged in the previous session as falling U.S. stock markets and fears of a global trade war pushed investors towards safer assets. Spot gold was down 0.24 percent at $1,337.77 an ounce at 8:03 a.m. EST after rising 1.3 percent on Monday. U.S. gold futures for June delivery were 0.37 percent lower at $1,341.70 an ounce.