The major U.S. index futures are pointing to a higher opening on Tuesday following the weakness seen in the previous session. Tech stocks may regain ground following yesterday’s sell-off.
Following the mixed performance seen last week, stocks moved mostly lower during trading on Monday. The tech-heavy Nasdaq showed a particularly steep decline.
The major averages all ended the day in negative territory. While the Nasdaq plunged by 56.33 points or 0.9 percent to 6,470.59, the Dow dipped by 53.84 points or 0.2 percent to 22,296.09 and the S&P 500 slipped 5.56 points or 0.2 percent to 2,496.66.
The weakness on Wall Street came amid geopolitical concerns after North Korean Foreign Minister Ri Yong Ho claimed recent comments by President Donald Trump represent a “declaration of war.”
“Last weekend, Trump claimed that our leadership wouldn’t be around much longer, and hence, at last, he declared war on our country,” Ri said.
He added, “Given the fact that this comes from someone that is currently holding the seat of the United States presidency, this is clearly a declaration of war.”
Traders were also digesting the results of the election in Germany over the weekend. German Chancellor Angela Merkel won a fourth term in office but will have to govern with a far less stable coalition.
Internet, semiconductor and software stocks turned in some of the market’s worst performances, contributing to the steep drop by the Nasdaq.
Steel, networking, and telecom stocks also moved to the downside, while energy and gold stocks moved higher amid an increase in their respective commodities prices.
Commodity, Currency Markets
Crude oil futures are falling $0.32 to $51.90 a barrel after spiking $1.56 to $52.22 a barrel on Monday. Meanwhile, after climbing $14 to $1,311.50 an ounce in the previous session, gold futures are sliding $6.50 to $1,305 an ounce.
On the currency front, the U.S. dollar is trading at 111.99 yen compared to the 111.73 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued $1.1787 compared to yesterday’s $1.1848.
Asian stocks fell broadly on Tuesday as investors adopted a cautious stance amid heightened tensions surrounding the Korean Peninsula.
North Korea’s top diplomat said on Monday that a weekend tweet by U.S. President Donald Trump counted as a declaration of war and North Korea has the right to take countermeasures, including shooting down U.S. bombers, even in international space.
Chinese stocks closed…