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US pre-open: Stocks look set to continue Monday's rally

By Iain Gilbert

Date: Tuesday 07 Apr 2020

US pre-open: Stocks look set to continue Monday's rally

(Sharecast News) - US futures were pointing to another positive day of trading on Tuesday, carrying on from the sharp gains recorded in the previous session.
As of 1235 BST, Dow Jones futures were up 3.64%, while S&P 500 and Nasdaq-100 futures had the indices opening 3.24% and 2.96% firmer, respectively.

The Dow closed 7.73% higher on Monday after an overall more optimistic tone around the Covid-19 pandemic from the White House at a press conference a day earlier.

The strong moves came after South Korea reported less than 50 new cases of Covid-19 for a second day in a row, while China posted no new deaths for the first time since it started publishing daily updates in January.

Also underlining sentiment were comments from Donald Trump, who said on Monday that there was "tremendous light at the end of the tunnel". World Health Organization officials also said research to develop vaccines and treatments for the virus had "accelerated at incredible speed".

IG analyst Chris Beauchamp said: "This upbeat mood continues to support risk assets in general, and not just stocks, although it is the surge in equities markets, breaking out above recent highs, that is the real indication of a more ebullient mood.

"Being forward-looking, stock markets can now look forward towards a potentially brighter future, even if the economic data remains poor, and with US equities in particular still attractively-priced relative to the start of the year, the rally may have further to go."

Covid-19 cases in the US have topped 347,000, with at least 10,000 deaths, according to Johns Hopkins University.

On the macro front, JOLTS job openings figures for February will be posted at 1500 BST, while February consumer credit data will follow at 2000 BST.

No major corporate earnings were slated for release on Tuesday.

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