Stock futures rose on Tuesday, the first day of November, as Wall Street tried to build on last month’s strong gains and awaited a key rate decision from the Federal Reserve.
Dow Jones Industrial Average futures rose 197 points, or 0.6%. S&P 500 and Nasdaq 100 futures rose 0.9% and 1.1% respectively.
Some traders pointed to optimism from unconfirmed reports that China may be moving away from its Zero Covid policy as the source of Tuesday’s early gains.
“Stocks are trading very well following unconfirmed reports on social media overnight of China formulating a plan to exit its ‘zero tolerance’ approach to COVID,” Adam Crisafulli wrote. from VitalKnowledge.
“While the consensus narrative has embraced the ‘Fed will slow its pace of tightening’ narrative, China remains among the most hated markets on the planet with its stock indexes at multi-decade lows – there’s still plenty of room to rally higher in the coming quarters assuming a more realistic COVID approach is implemented,” he added.
Wall Street wrapped up a strong month of gains on Monday, with the Dow Jones rallying nearly 14% for its biggest monthly gain since January 1976, as investors shunned technology and kept their hopes on stalwarts like banks. The S&P 500 and Nasdaq Composite added around 8% and 3.9%, respectively.
Earnings season continues on Tuesday with Uber, Pfizer and Fox before the bell and Advanced Micro Devices and Airbnb after the close.
Tuesday also marks the start of the Fed’s November meeting, which many market participants expect will result in an interest rate hike of 75 basis points. Many will look to the central bank’s statement and Fed Chairman Jerome Powell’s Q&A segment for clues about policymakers’ fight against inflation.
IInvestors will also be watching economic releases on Tuesday, including data on job openings and construction spending for September, as well as the ISM manufacturing report for October.
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