Stock-market futures point to slight rebound after huge tech-driven selloff

U.S. stock-index futures pointed to a modestly higher open on Tuesday, though caution and volatility were expected to remain elevated after a broad selloff in the previous session took the S&P 500 below a key technical level and erased the Nasdaqs gains for the year.

President Donald Trump remained a key focus for the equity market, with investors wary of any trade actions he might announceparticularly after China retaliated to U.S. tariffs with protectionist measures of its ownas well as his feud with Amazon, which he has repeatedly criticized over Twitter in the past week. The technology sector, which led the markets decline on Monday, will also remain at the forefront of Wall Streets attention.

What are the main benchmarks doing?

Dow Jones Industrial Average futures
YMM8, +0.69%
rose 91 points, or 0.4% to 23,644, while S&P 500 futures
ESM8, +0.72%
added 12.50 points, or 0.5%, to 2,587.50. Nasdaq-100 futures
NQM8, +1.00%
were up 38 points, or 0.6%, to 6,431.25.

Mondays selloff was broad-based and deep. Both the S&P and the Nasdaq shed more than 2%, with the S&P closing below its 200-day moving average for the first time since the United Kingdoms vote for Brexit in June 2016. That closely watched technical levelwhich the Dow nearly closed below as wellis used to gauge long-term momentum. While the Dow
DJIA, -1.90%
held above that level, all 30 of its components were below their 50-day moving average, a sign that short-term momentum may be trending to the downside.

The Nasdaq Composite Index
COMP, -2.74%
turned negative for the year on Monday and neared correction territory, defined as a drop of at least 10% from a peak.

Whats driving markets

Investors will be on the lookout for volatility, which has been a hallmark of markets over the past few weeks. Despite the bumpy start to the month, April tends to be a strong month for stocks, including the strongest of the year for the Dow.

Dont miss: Why stock investors should be welcoming the return of volatility

Tech stocks will likely remain on the radar, given they have been driving recent losses. Worries about Inc.
AMZN, -5.21%
given Trumps attacks on the online retailer, could continue Tuesday after Vanity Fair reported that hes seeking ways to damage the company. While Amazon is classified as a consumer-discretionary stock, it often moves on tech issues and it is part of the so-called group of FAANG names that drove markets higher in 2017 but have struggled more of late.

Read: Facebook is in bear market territory, Apple is in a correction, and they are far from alone

The trade situation, which has been knocking the stock market, should be another focus. China announced tariffs on about 130 U.S. goods over the weekend, in retaliation for the Trump administrations planned tariffs on Chinese imports.

Also: What struggled in the first quarter? Stocks, bonds, basically everything

There are no major economic data releases scheduled for Tuesday, though updates on vehicle sales should come in throughout the day.

As for Federal Reserve speakers, Minneapolis Fed President Neel Kashkari, whos not a voting member this year on the Feds rate-setting board, is expected to take part in a moderated discussion at the Regional Economic Indicators Forum in Duluth, Minn., at 9:30 a.m. Eastern Time. Fed Gov. Lael Brainard is due to speak on financial stability at New York University at 4:30 p.m. Eastern.

Check out: MarketWatchs Economic Calendar

What strategists are saying

This is still a market trading on fear instead of fundamentals and on tweets instead of technicals, which has made it frustratingly difficult to figure out where were headed in the near term, said Andrew Adams, an investment strategist at Raymond James. Theres just not much positive news to help balance out the daily onslaught of fear-producing headlines about trade wars and tech crises, especially since we are currently in between earnings seasons.

Read: Data, earnings set to wrest stock markets attention from Facebook and trade

Which stocks are in focus?

The FAANG namesin addition to Amazon, this group includes Facebook
FB, -2.75%
AAPL, -0.66%
NFLX, -5.10%
and Google-parent Alphabet
GOOGL, -2.36%
GOOG, -2.45%
will continue to be in focus after their sharp losses on Monday.

Read: Facebook is in bear-market territory as Apple flirts with a correction, and they are far from alone

Tesla Inc.
TSLA, -5.13%
could also see heavy trading following a 5.1% drop on Monday. Trading in the electric-car maker has been driven by uncertainty over the companys ability to turn out as many Model 3 sedans as it has promised.

Walmart Inc.
WMT, -3.84%
may be active after CNBC reported the retailer is in talks to buy online pharmacy startup PillPack. That comes days after Walmart was reported to be in early talks to buy Humana Inc.
HUM, +4.42%

21st Century Fox Inc.
FOX, -1.90%
shares may be active after the media company proposed separating Sky News from the rest of Sky PLC
SKY, +2.08%
to allay U.K. regulators concerns its bid to acquire the 61% of Sky it doesnt already own. Fox also said Walt Disney Co.
DIS, -1.77%
has expressed interest in buying Sky News.

Spotify Technology Inc.
SPOT, +0.00%
is expected to make its trading debut on the New York Stock Exchange on Tuesday.

Opinion: This math shows why stock-market investors should be wary of buying into Spotify

And see: Spotify has fans on Wall Street as it prepares to go public

What are other markets doing?

Asian stock markets
NIK, -0.45%
HSI, +0.29%
closed lower, as tech stocks tracked U.S. losses Monday.European stocks
SXXP, -0.36%
SXXP, -0.36%
also fell, as traders returned from a long holiday weekend.

Oil prices
CLK8, +0.43%
were modestly higher, while gold futures
GCJ8, -0.31%
slipped and the ICE U.S. Dollar Index
DXY, +0.04%
DXY, +0.04%
clung to a thin gain.

Related Topics U.S. Stocks Markets NY Stock Exchange NASDAQ

Quote References YMM8 +163.00 +0.69% ESM8 +18.50 +0.72% NQM8 +63.75 +1.00% DJIA -458.92 -1.90% COMP -193.33 -2.74% AMZN -75.35 -5.21% FB -4.40 -2.75% AAPL -1.10 -0.66% NFLX -15.06 -5.10% GOOGL -24.51 -2.36% GOOG -25.32 -2.45% TSLA -13.65 -5.13% WMT -3.42 -3.84% HUM +11.87 +4.42% FOX -0.69 -1.90% SKY +27.00 +2.08% DIS -1.78 -1.77% SPOT +0.00 +0.00% NIK -96.29 -0.45% HSI +86.72 +0.29% SXXP -1.32 -0.36% CLK8 +0.27 +0.43% GCJ8 -4.20 -0.31% DXY +0.03 +0.04% Show all references
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E-Mini Dow Jun 2018 U.S.: CBOT: YMM8 $23,715.00 +163.00 (+0.69%)

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