By Peter Nurse
Investing.com - U.S. stocks are set to open higher Wednesday, rebounding after Tuesday’s late selloff, with investors still unwilling to abandon hopes of a stimulus package from Capitol Hill.
At 7:10 AM ET (1110 GMT), US 500 Futures traded 24 points, or 0.7%, higher, the Dow Futures contract rose 250 points, or 0.9%, while Nasdaq 100 Futures gained 95 points, or 0.9%.
At the close Tuesday, the Dow Jones Industrial Average lost 0.4%, the S&P 500 index lost 0.8%, registering their first declines in eight sessions, and the NASDAQ Composite index lost 1.7%.
The losses had been driven by a rise in long-term bond yields, as investors braced for a massive auction of 10-year notes from the Treasury later Wednesday.
Doubts still exist over whether U.S. lawmakers will strike an agreement on an additional round of fiscal stimulus to support the economy. Meanwhile, President Donald Trump is reportedly contemplating another executive action that would amount to a roughly $100 billion capital gains tax cut for investors, although it would almost certainly face legal challenges from Congress.
Atlanta Fed President Thomas Barkin increased the pressure on Congress, stating Tuesday that the economy could take another downturn if U.S. policymakers fail to provide more financial aid.
Stocks are being supported a little by Democratic Party presidential candidate Joe Biden's choice of California Senator Kamala Harris as his running mate Tuesday. Harris belongs the more moderate wing of the party, and her presence on the ticket points to a reduced risk of an extreme progressive influence in the White House if the Democrats win in November.
The global tally for confirmed cases of Covid-19 is now over 20 million, with the death toll rising to over 741,000, according to data aggregated by Johns Hopkins University. The U.S. has by far the most cases at 5.14 million, and deaths at 164,537.
The economic slate centers around consumer prices for July, with the key core CPI release expected to have risen 0.2% in the month, the same as in June.
Elsewhere, earnings are expected from the likes of Cisco Systems (NASDAQ:CSCO), Lyft (NASDAQ:LYFT). Tencent Holdings (OTC:TCEHY) reported earlier, handily beating expectations.
Oil prices pushed higher Wednesday, helped by the American Petroleum Institute showing a larger than expected draw in crude inventories of 4.4 million barrels, versus a 3.2-million-barrel forecast. Official government numbers are due later Wednesday.
Additionally, the Organisation of Petroleum Exporting Countries will also release its monthly market report Wednesday, which will include their production numbers for July, along with the group’s outlook on demand for the remainder of this year and 2021.
U.S. crude futures traded 1.5% higher at $42.23 a barrel, while the international benchmark Brent contract rose 1.5% to $45.10.
Elsewhere, gold futures slipped 0.1% to $1,943.60/oz, continuing this week’s sharp selloff after the yellow metal had registered all-time highs above $2,000. EUR/USD traded 0.3% higher at 1.1770.