Dow futures jump 500 points, Nasdaq futures add 2% as stocks look to keep coming back

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Stock futures rose Tuesday morning after the Nasdaq Composite posted its best daily performance since July.

Nasdaq 100 futures rose 2.13%. Futures linked to the Dow Jones Industrial Average gained 506 points or 1.67% and S&P 500 futures jumped 1.88%.

Good results on Tuesday morning fueled a rally that started on Monday. Johnson & Johnson shares rose 1.7% in premarket trading after beating estimates on higher and lower earnings for the third quarter. Goldman Sachs rose more than 2% after strong trading results helped the investment bank beat earnings and revenue expectations.

Those reports continued strong earnings gains, including beats from Bank of America and Bank of New York Mellon on Monday.

The Dow is off to a strong start to the week, adding around 551 points on Monday. The S&P 500 also rose 2.65% for the day. The Nasdaq jumped 3.43% as tech stocks rebounded, led by names including Amazon, Meta Platforms and Microsoft. It was the best day for the tech-heavy index since July 27.

Fears of a recession and overly aggressive central banks have helped push U.S. markets to yearly lows in recent weeks, but the strong start to the earnings season could signal that the economy is currently in better shape. provided that.

“The 3rd and 4th quarter results should confirm that the fundamentals remain anchored in a resilient labor market and the reopening of Covid. Equity valuation is likely to remain tied to global central bank rhetoric and rates, which are becoming less and less negative. As such, we see equities bracing for the upside in the year-end on resilient 2H22 earnings, low equity positioning, very negative sentiment and a more reasonable valuation.” said Dubravko Lakos-Bujas, head of global macro research at JPMorgan, in a note to clients.

“Next year, however, we expect a more challenging earnings environment compared to current expectations,” he added.

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