US pre-open: Futures trade higher after Dow drops to lowest level since 2020
Wall Street futures were in the green ahead of the bell on Tuesday after the blue-chip Dow Jones closed at its lowest level in more than two years in the previous session.
As of 1230 BST, Dow Jones futures were up 0.82%, while S&P 500 and Nasdaq-100 futures had the indices opening 1.06% and 1.27% higher, respectively.
The Dow closed 329.60 points lower on Monday as a surging dollar and heightened bond yields took centre stage.
The greenback was in focus yet again on Tuesday as the British pound bounced back more than 1% in early trading to sit at $1.083 just 24 hours after hitting a record low against the USD as investors looked for further clarity regarding UK monetary policy amid calls for aggressive rate hikes in order to stabilise the pound.
Oil prices were slightly higher on Tuesday morning after tumbling to their lowest level since January in the previous session, with West Texas Intermediate crude futures up about 1% at $77.50 per barrel.
Comments from Cleveland Fed president Loretta Mester were also drawing an amount of investor attention prior to the open, with the central banker saying inflation was "unacceptably high" and that uncertainties had made monetary policy decisions "not trivial".
"When there is uncertainty, it can be better for policymakers to act more aggressively," she said. "Aggressive and pre-emptive action can prevent the worst-case outcomes from actually coming about." Mester added that she would be "very cautious" when assessing inflation data.
On the macro front, last month's durable goods orders data will be released at 1330 BST, while July's house price index will be published at 1400 BST and the Conference Board's September consumer confidence report and August new home sales data will follow at 1500 BST.
In the corporate space, Cracker Barrel will report earnings before the open, while Blackberry will update on recent trading after the close.
Reporting by Iain Gilbert at Sharecast.com