US Stocks: Futures bounce after brutal Wall Street selloff

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US stock index futures jumped about 1% on Tuesday, following a bruising selloff over the last few sessions on rate-hike induced recession fears that confirmed the Dow has been in a bear market for most of this year.

If gains hold till the open, the three major stock indexes will snap a five-day losing streak, with rate-sensitive growth shares leading the advance in premarket trading.

Oil stocks got a shot in the arm after a sharp recovery in crude prices, with Exxon and Chevron up 1.4% each.

At 6:59 a.m. ET, Dow e-minis were up 273 points, or 0.93%, S&P 500 e-minis were up 42.25 points, or 1.15%, and Nasdaq 100 e-minis were up 152.5 points, or 1.35%.

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Concerns about corporate profits coming under pressure from soaring prices, an economic downturn and higher interest rates have roiled Wall Street in the past two weeks, pushing the S&P 500 to new closing lows for the year on Monday.

Analysts have cut their S&P 500 earnings estimates for the third and fourth quarters, and for all of 2022. For the third quarter, overall S&P 500 earnings are seen rising just 4.6% year-over-year, compared with the 11.1% growth expected at the start of July.

US Federal Reserve officials on Monday sloughed off rising volatility in global markets, from slumping US stocks to currency turbulence abroad, and said their priority remained controlling domestic inflation.

Chicago Fed President Charles Evans said the central bank will need to raise interest rates by at least another percentage point this year, highlighting the Fed’s combative stance to quash too-high inflation.

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Analysts at Wells Fargo now see the US central bank taking its target range for the Fed funds rate to 4.75%-5.00% by the first quarter of 2023.

Later in the day, investors will be watching for August durable goods orders, as well as consumer confidence data for the month.