Federal Reserve Chairman Jerome Powell said bond purchases are ‘supporting accommodative financial conditions’ and that the Main Street Lending Facility will be up and running soon.
U.S. equity futures are pointing to a higher open, following up on a stock turnaround from Monday after the Federal Reserve announced a program to support markets battered by the coronavirus pandemic.
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The major futures indexes are indicating a rise of 0.9 percent when Wall Street begins the Tuesday trading session.
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The Fed announced in the afternoon that it will buy individual corporate bonds, as part of its previously announced program to keep lending markets running smoothly and allow big employers to get access to cash.
The move sparked a turnaround that went from a loss of 900 Dow points overnight to a gain in the regular session.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 25763.16 | +157.62 | +0.62% |
| SP500 | S&P 500 | 3066.59 | +25.28 | +0.83% |
| I:COMP | NASDAQ COMPOSITE INDEX | 9726.022871 | +137.21 | +1.43% |
The S&P 500 rose 0.8 percent, the Dow Jones Industrial Average gained 0.6 percent and the Nasdaq composite added 1.4 percent.
On Tuesday, the Commerce Department will report retail sales for May. The anticipated 8 percent jump in sales last month would be the largest ever, following a record 16.4 percent plunge in April.
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In Asian markets on Tuesday, Japan’s Nikkei gained 4.9 percent, Hong Kong’s Hang Seng added 2.7 percent and China’s Shanghai Composite rose 1.3 percent.
Still, the number of COVID-19 cases is still growing in states across the country and nations around the world.
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Benchmark U.S. crude lost 3 cents to $37.09 a barrel. It rose 86 cents to $37.12 a barrel on Monday. Brent crude, the international standard, was little changed at $39.71 a barrel.
The Associated Press contributed to this article.
