US Stocks Likely To Open Higher After Monday's Selloff: TSLA Stock Rebounds From Its Worst Fall In 5 Years After Trump Backs Musk, Analyst Says 'Pullbacks Are Normal'
U.S. stock futures rose on Tuesday following Monday’s heavy selloff. Futures of all four benchmark indices surged in premarket trading.
On Monday, the Nasdaq 100 index fell 12.56%, while the S&P 500 dropped 8.67% from its previous high. While Nasdaq 100 had entered the correction zone last week, S&P 500 was nearing the territory.
The selloff followed President Donald Trump‘s comments from Sunday, where he didn’t rule out the possibility of a recession. He also said that the economy was undergoing "a period of transition,” as his tariff battle against major trading partners continued.
Meanwhile, the 10-year Treasury yield stood at 4.20%, while the two-year yield was at 3.89%. According to the CME Group's FedWatch tool, there is a 95% chance that the Federal Reserve will keep interest rates unchanged for the March meeting.
Futures
Change (+/-)
Nasdaq 100
0.41%
S&P 500
0.27%
Dow Jones
0.20%
Russell 2000
0.93%
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Tuesday. The SPY was up 0.37% to $562.63, and the QQQ also advanced 0.57% to $475.42, according to Benzinga Pro data.
Cues From The Last Session
On Monday, U.S. stock market saw significant losses, particularly in consumer discretionary, information technology, and communication services sectors.
In contrast, utilities and energy sectors saw gains. This sector-driven decline contributed to the Dow dipping 890 points.
Overall market weakness followed a tough week, with the S&P 500 down 3.1%. Tesla Inc. (NASDAQ:TSLA) and Meta Platforms Inc. (NASDAQ:META) shares also experienced notable drops.
Index
Performance (+/-)
Value
Nasdaq Composite
-4.00%
17,468.32
S&P 500
-2.70%
5,614.56
Dow Jones
-2.08%
41,911.71
Russell 2000
-2.72%
2,019.07
Insights From Analysts
After entering correction territory last week, the Nasdaq 100 fell 3.81% on Monday, confirming a key trend highlighted by Jason Goepfert.
Historically, a 3.5%+ drop following a correction and a 200-day average breach has led to a bear market, according to Goepfert.
Goepfert reaffirmed his assumptions and said that a "bad scenario," had been triggered and it was "Not the best sign for bulls."
Already triggered the ...
