Stock futures were higher on Tuesday morning after ending the day lower, snapping a two-day advance that began when a better-than-expected inflation report fueled hopes the Federal Reserve would soon ease. rising interest rates.
Futures contracts linked to the Dow Jones Industrial Average rose 117 points, or 0.35%. S&P 500 and Nasdaq-100 futures gained 0.46% and 0.71% respectively. taiwan semiconductor, Louisiana-Pacific and Primordial surged after regulatory filings showed Warren Buffett’s Berkshire Hathaway had bought new positions in the former two and increased its stake in the latter.
Investors also watched filings to see what top investors Michael Burry, Bill Ackman, David Tepper and others bought or sold during the third quarter.
Stocks were whipped during the day on Monday following comments from Federal Reserve leaders Lael Brainard and Chris Waller on upcoming rate hikes. While Brainard said the central bank could tone down rate hikes, Waller said the market was too optimistic and should brace for higher rates.
“After last week’s CPI understatement caused a huge rally in equities and a reversal in the dollar, the critical topic for markets this week will be the reaction of the Fed,” wrote Huw Roberts, chief executive. of analysis at Quant Insight, in a Monday note.
He added that the extent to which speakers this week push back or endorse recent market moves “will be critical.”
Shares later fell on a report that Amazon will lay off about 10,000 employees, potentially starting this week.
Markets will get more information on inflation on Tuesday when the Producer Price Index, a measure of wholesale inflation, is released. Investors will also consider comments from Philadelphia Fed President Patrick Harker, Fed Governor Lisa Cook and Fed Vice Chairman for Supervision Michael Barr.
Earnings season continues this week with retail reports on deck. Walmart and Home Depot report earnings Wednesday while Target, Lowe’s, Bath and Body Works, Macy’s, Kohl’s and Foot Locker report later in the week.