Stock futures rose Tuesday morning after the Nasdaq posted its best daily performance since July.
Nasdaq 100 futures rose 2.13%. Dow Jones Industrial Average futures rose 506 points, or 1.67%, and S&P 500 futures jumped 1.88%.
Tuesday morning’s strong earnings results added fuel to the rally that started on Monday. Shares of Johnson & Johnson rose 1.7% in premarket trading after it beat estimates in its third-quarter net profit. Goldman Sachs rose more than 2% after strong trading results helped the investment bank beat earnings and revenue expectations.
Those reports continued a strong set of earnings, including wins from Bank of America and Bank of New York Mellon on Monday.
The Dow is off to a strong start to the week, adding nearly 551 points on Monday. The S&P 500 is also up 2.65% on the day. The Nasdaq rose 3.43% as technology shares rebounded, led by names such as Amazon, Meta Platforms and Microsoft. It was the best day for the tech heavyweight since July 27.
Recession fears and hyper-aggressive central banks have helped push US markets to their lowest levels this year in recent weeks, but a strong start to earnings season may indicate that the economy is currently in better shape than expected.
“Third and fourth quarter earnings should confirm that fundamentals remain firm in a flexible labor market and reopening of Covid. Stock valuation is likely to remain tied to global central bank rhetoric and rates, which are gradually turning less negative. As such, we see stocks primed for direction Bullish during the year Dobravko Lakos-Bojas, head of global macro research at JP Morgan, said in a note to clients: – Stop on resilient earnings in the second half of ’22, lower stock position, very negative sentiment, and give a more reasonable valuation.
“Next year, however, we expect a more challenging earnings background relative to current expectations,” he added.
