U.S. equities look ready to extend yesterday's rebound this morning, as the S&P 500 futures are trading 10 points, or 0.4%, above fair value.
Technology and financial shares led a broad rally on Monday, which saw the major U.S. stock indices reclaim more than a third of last week's losses, adding between 2.7% and 3.3% apiece. A Wall Street Journal report, released over the weekend, that the U.S. and China have started negotiating to improve American access to Chinese markets has helped ease fears of a potential trade war -- which were elevated after the White House announced tariffs on Chinese imports last week, prompting Beijing to retaliate with tariffs of its own.
Overseas, equity markets in Asia marched higher on Tuesday, with Japan's Nikkei (+2.4%) leading the charge, and the major bourses in Europe are currently up across the board, sporting gains between 1.4% and 2.0%. In Asia, North Korea's Supreme Leader Kim Jong-un reportedly visited Beijing ahead of an expected summit with U.S. President Donald Trump, marking the first time an active North Korean ruler has stepped foot outside the country. Separately, a poll conducted by Asahi showed that 48% of respondents are in support of Prime Minister Shinzo Abe's resignation in the wake of the land deal scandal.
In U.S. corporate news, Red Hat (RHT) is up 6.8% in pre-market trading after reporting better-than-expected earnings and revenues for the fourth quarter and issuing mostly upbeat guidance; the software company raised its revenue guidance for the first quarter and raised both its earnings and revenue guidance for fiscal year 2019.
U.S. Treasuries are mostly higher this morning, pushing yields a tick lower; the benchmark 10-yr yield is down one basis point at 2.83%. Meanwhile, the U.S. Dollar Index is up 0.5% at 89.10, West Texas Intermediate crude futures are up 1.1% at $66.25 per barrel, and gold is down 0.9% at $1,342.40 per oz, retreating from a five-week high.
Investors will receive two economic reports today -- the S&P Case-Shiller Home Price Index for January (Briefing.com consensus 6.3%) and the Conference Board's Consumer Confidence Index for March (Briefing.com consensus 129.5) -- which will be released at 9:00 AM ET and 10:00 AM ET, respectively. However, neither report is expected to have much impact on trading.