Following the weakness seen in the previous session, stocks are likely to move back to the upside in early trading on Monday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 197 points.
The markets are likely to benefit from positive reports about President Donald Trump’s health after he was rushed to Walter Reed hospital on Friday.
In a video posted on Twitter late Sunday, Trump said he is “getting great reports from the doctors” regarding his battle with the coronavirus.
According to a report from NBC News, Trump and the team of doctors treating him will decide later today whether to discharge him from the hospital.
“The discharge decision will be made later today between the president and his medical team,” White House chief of staff Mark Meadows told NBC News.
Optimism about a new stimulus bill may also contribute to initial strength on Wall Street, with Trump putting pressure on lawmakers to reach an agreement.
Shortly after the start of trading, the Institute for Supply Management is scheduled to release its report on activity in the service sector in the month of September.
The services PMI is expected to edge down to 56.0 in September after dipping to 56.9 in August, although a reading above 50 would still indicate growth in the service sector.
Stocks fluctuated over the course of the trading session on Friday but largely maintained a negative bias. The major averages all finished the day firmly in negative territory, although the tech-heavy Nasdaq posted a particularly steep loss.
After falling by more than 400 points in early trading, the Dow briefly turned positive in mid-day trading but ended the session down 134.09 points or 0.5 percent at 27,682.81. The Nasdaq plunged 251.49 points or 2.2 percent to 11,075.02 and the S&P 500 slumped 32.36 points or 1 percent to 3,348.44.
Despite the lower close on the day, the major averages posted strong gains for the week. The Dow surged up by 1.9 percent, while the Nasdaq and the S&P 500 both jumped by 1.5 percent.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan’s Nikkei 225 Index jumped by 1.2 percent, while Hong Kong’s Hang Seng Index surged up by 1.3 percent.
The major European markets have also moved to the upside on the day. While the U.K.’s FTSE 100 Index has risen by 0.7 percent, the German DAX Index and the French CAC 40 Index are both up by 0.8 percent.
In commodities trading, crude oil futures are jumping $1.43 to $38.48 a barrel after tumbling $1.67 to $37.05 a barrel last Friday. Meanwhile, after sliding $8.70 to $1,907.60 an ounce in the previous session, gold futures are rising $3.90 to $1,911.50 an ounce.
On the currency front, the U.S. dollar is trading at 105.58 yen versus the 105.29 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.1765 compared to last Friday’s $1.1716.
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