Wall St set to rebound after big stocks rout

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Aug 6 - Wall Street's main indexes were set to open higher in volatile trading on Tuesday as investors looked for bargains after a rout in the previous session, while dovish rate commentary from Federal Reserve officials also lifted the mood.

Both the S&P 500 and the Nasdaq Composite , posted losses of at least 3% each in the previous session after weak economic data raised worries of a U.S. recession and the unwinding of sharp positions of carry trades that fund high-yielding assets. U.S. central bank policymakers pushed back on Monday against the notion that weaker-than-expected July jobs data means the economy is in recessionary freefall, but also warned that the Fed will need to cut rates to avoid such an outcome.

Top brokerages including J.P. Morgan , opens new tab, Citigroup , and Wells Fargo , have forecast a 50-basis-point interest rate cut by the U.S. central bank in September after the surprisingly weak employment report. At 8:30 a.m. ET, Dow E-minis were up 185 points, or 0.48%, S&P 500 E-minis were up 27.75 points, or 0.53% and Nasdaq 100 E-minis were up 90.75 points, or 0.50%. Among other movers, Palantir Technologies , surged 11.2% after the software services provider raised its annual revenue and profit forecasts for the second time this year.

 

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