The Market News Today: Tech Stocks Bounce Back Ahead of US Opening

S&P 500 Futures Rebound Overnight Following Massive Market Sell-Off

S&P 500 futures bounced back in overnight trading, rising over 1% after the index suffered its worst day in nearly two years. The rebound follows a sharp global sell-off that saw the Dow drop over 1,000 points and the Nasdaq tumble into correction territory. Fears of a recession, sparked by a weak July jobs report, had fueled the downturn. Despite the overnight recovery, analysts caution that market repair may take time. Tech and AI stocks, which bore the brunt of the sell-off, also showed signs of recovery in after-hours trading.

Palantir Soars on AI Demand, Mixed Results for Other Stocks

Several stocks showed notable pre-market movements. Palantir Technologies surged 15% after strong earnings and an optimistic forecast driven by AI demand. Lucid Group and CSX Corp. also gained on positive results. Some semiconductor stocks rebounded slightly after Monday’s decline. However, Spirit AeroSystems, Hims & Hers Health, Avis Budget Group, and ZoomInfo Technologies faced setbacks due to disappointing earnings or guidance. The market showed varied responses to quarterly reports, with AI-related companies generally outperforming others.

Caterpillar’s Q2 Earnings: Focus on Inventory Amid Soft Markets

Caterpillar, a Dow Jones component, is set to report Q2 earnings Tuesday. Analysts expect earnings of $5.54 per share and revenue of $16.7 billion, down 3.7% YoY. Investors will closely watch inventory progression given soft end-market conditions. Historically, dealer inventories decrease by $150-200 million in Q2, and observers will monitor if this trend continues or if inventories are building. The report comes amid concerns about market softness and its potential impact on Caterpillar’s performance.

Market Crash Fears Could Trigger Economic Slowdown, Experts Warn

Stock markets around the world have taken a big hit recently, worrying many people. Experts at Morningstar DBRS say that if this continues, it could cause real problems for the economy. They’re concerned that business leaders might cut back on spending and hiring, while regular people might shop less, all because they’re scared about the market drop. This could lead to a downward spiral and possibly a recession. The market fall started after a disappointing U.S. jobs report, making people wonder if the economy is in trouble. However, the experts also point out that the economy is still growing, just more slowly, and banks are in a good position to handle the situation. The biggest risk is that fear itself could cause the very problems everyone’s worried about.

Treasury Yields Rebound as Markets Recover from Global Sell-Off

Treasury yields bounced back on Tuesday following Monday’s global market downturn. The 10-year Treasury yield rose over 5 basis points to 3.8371%, rebounding from its lowest level since June 2023. This recovery comes amid investor concerns about economic outlook and potential Fed actions. Despite recent market volatility, some analysts view the situation as a temporary disruption rather than a fundamental economic shift. Expectations vary regarding the Fed’s next moves, with some predicting a significant rate cut in September to boost market confidence.