Futures Pointing To Roughly Flat Open On Wall Street

(RTTNews) - The major U.S. index futures are currently pointing to a roughly flat open on Tuesday, with stocks likely to show a lack of direction after moving sharply higher over the course of the previous session.

Traders may take a step back to assess the near-term outlook for the markets following the substantial volatility seen over the past several sessions.

The rally on Monday extended a notable rebound seen during last Friday's trading, helping the major averages largely offset the steep drop seen for much of last week.

The futures remained little changed even after the release of long-delayed reports on U.S. retail sales and producer prices in the month of September.

The Commerce Department released a report showing retail sales in the U.S. increased by less than expected in the month of September.

The report said retail sales rose by 0.2 percent in September after climbing by 0.6 percent in August. Economists had expected retail sales to grow by 0.4 percent.

Excluding a dip in sales by motor vehicle and parts dealers, retail sales increased by 0.3 percent in September after advancing by 0.6 percent in August. Ex-auto sales were expected to rise by 0.4 percent.

A separate report released by the Labor Department showed producer prices in the U.S. increased in line with economist estimates in the month of September.

The Labor Department said its producer price index for final demand rose by 0.3 percent in September after edging down by 0.1 percent in August. The monthly price growth matched expectations.

The report also said the annual rate of growth by producer prices came in at 2.7 percent in September, unchanged from an upwardly revised reading in August.

Economists had expected the annual rate of producer price growth to tick up to 2.7 percent from the 2.6 percent originally reported for the previous month.

Meanwhile, payroll processor ADP released a report showing U.S. private sector employers shed an average of 13,500 jobs per week in the four weeks ending November 8th compared to an average loss of 2,500 jobs in the previous four-week period.

Following the notable rebound seen during last Friday's session, stocks showed an even more substantial move to the upside during trading on Monday. The tech-heavy Nasdaq showed a particularly strong upward move on the day.

The Nasdaq surged 598.92 points or 2.7 percent to 22,872.01, largely offsetting the steep drop seen last week. The S&P 500 also jumped 102.13 points or 1.6 percent to 6,705.12, while the narrower Dow posted a more modest gain, rising 202.86 points or 0.4 percent to 46,448.27.

The rally on Wall Street came as traders continued to pick up stocks at relatively reduced levels, as the jump seen during last Friday's session only partly offset the steep drop seen earlier in the week.

Concerns about valuations and the outlook for interest rates weighed on the markets for much of last week, dragging the Nasdaq and the S&P 500 down to their lowest closing levels in over two months last Thursday.

Despite the rebound on Friday, the major averages all posted steep losses for the week. The Nasdaq plunged by 2.7 percent, the S&P 500 tumbled by 2.0 percent and the Dow slumped by 1.9 percent.

Positive sentiment may also have been generated amid signs of progress toward an agreement to end the protracted war between Russia and Ukraine.

Secretary of State Marco Rubio said "tremendous progress" had been made in talks with Ukrainian officials, calling the sticking points on the Trump administration's peace proposal "not insurmountable."

The markets also benefitted from renewed optimism about the outlook for interest rates following the latest remarks by Federal Reserve officials.

In an interview with Fox Business this morning, Fed Governor Christopher Waller indicated he supports cutting rates by another quarter point in December.

Waller's comments come following dovish remarks by New York Federal Reserve President John Williams last Friday, when he said he sees "room for a further adjustment" to rates in the near term.

CME Group's FedWatch Tool currently indicates an 84.9 percent chance the Fed will cut rates by a quarter point next month, up sharply from 42.4 percent a week ago.

Semiconductor stocks have helped lead the markets higher, with the Philadelphia Semiconductor Index soaring by 4.6 percent. The index continued to regain ground after ending last Thursday's trading at its lowest closing level in almost two months.

Computer hardware and networking stocks also saw substantial strength, contributing to the surge by the tech-heavy Nasdaq.

Outside of the tech sector, gold stocks moved sharply higher along with the price of the precious metal, resulting in a 5.8 percent spike by the NYSE Arca Gold Bugs Index.

Airline, brokerage and biotechnology stocks also saw notable strength on the day, moving higher along with most of the other major sectors.

Commodity, Currency Markets

Crude oil futures are tumbling $0.86 to $57.98 a barrel after jumping $0.78 to $58.84 a barrel on Monday. Meanwhile, after climbing $14.70 to $4,094.20 an ounce in the previous session, gold futures are surging $45.80 to $4,140 an ounce.

On the currency front, the U.S. dollar is trading at 156.16 yen compared to the 156.89 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is trading at $1.1548 compared to yesterday's $1.1520.

Asia

Asian stocks rose broadly on Tuesday, with Chinese and Hong Kong markets leading the gains after U.S. President Donald Trump announced an April visit to China at Xi Jinping's invitation following a productive phone call.

Regional gains were also driven by AI optimism and increased confidence in an interest rate cut by the Federal Reserve.

The dollar was steady in Asian trading ahead of the release of key U.S. economic data later in the day, including readings on retail sales, pending home sales, producer prices and consumer confidence.

Ahead of Thanksgiving and Black Friday, these reports may provide valuable insights into inflation pressures, consumer spending patterns and overall economic sentiment in the world's largest economy.

Gold extended gains to hit its highest level in more than a week, while oil drifted lower on expectations of a looser supply-demand balance next year.

China's Shanghai Composite Index jumped 0.9 percent to 3,870.02 as Trump touted relations with China as "extremely strong" following a call with Chinese leader Xi Jinping.

Hong Kong's Hang Seng Index climbed 0.7 percent to 25,894.55. E-commerce giant Alibaba gained more than 2 percent ahead of its earnings release.

Japanese markets ended on a flat note as trading resumed after a holiday. The Nikkei 225 Index finished marginally higher at 48,659.52, while the broader Topix Index settled 0.2 percent lower at 3,290.89.

Eisai shares soared 7.4 percent as the failure of Novo Nordisk's semaglutide to reduce Alzheimer's disease progression removed a "modest" or "perceived" overhang on Biogen, which developed and co-markets Leqembi with partner Eisai.

Seoul stocks eked out modest gains to snap a two-day losing streak on revived hopes for a Federal Reserve rate cut and eased fears over artificial intelligence uncertainties.

The Kospi rose 0.3 percent to 3,857.78, led by tech and energy shares. Samsung Electronics advanced 2.7 percent and Korea Electric Power rallied 6.9 percent.

Australian markets ended slightly higher, with gold miners leading the uptick. Banks and insurance companies fell, limiting overall gains in the broader market.

The benchmark S&P/ASX 200 Index edged up 0.1 percent to 8,537.00, while the broader All Ordinaries Index closed up 0.3 percent at 8,824.20.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index slipped 0.1 percent to 13,480.43 ahead of the Reserve Bank of New Zealand's interest rate decision.

Europe

Following the mixed performance seen in the previous session, European stocks have moved mostly higher over the course of the trading day on Tuesday.

While the U.K.'s FTSE 100 Index is up by 0.4 percent, the French CAC 40 Index and the German DAX Index are both up by 0.7 percent.

On the economic front, revised data from Destatis showed the German economy stagnated in the third quarter as growth in investment was offset by the weakness in exports.

Destatis confirmed that gross domestic product remained unchanged on a quarterly basis, following a decline of 0.2 percent in the second quarter.

"Economic activity was hampered in the third quarter by weak exports, while investments increased slightly," Federal Statistical Office President Ruth Brand said.

ABN AMRO has surged. The Dutch bank announced plans to cut 5200 full-time jobs by 2028 as new Chief Executive Officer Marguerite Berard seeks to boost profitability.

Home improvement retailer Kingfisher has also moved sharply higher after raising its profit outlook.

Swedish builder Skanska has also moved to the upside after it signed a contract to build a new data center in USA.

Meanwhile, British carrier easyJet fell has moved lower despite reporting better-than-expected full-year operating profit.

Thyssenkrupp Nucera shares have also slumped in Frankfurt after the electrolyser maker forecast sharply lower sales for 2026.

U.S. Economic News

Retail sales in the U.S. increased by less than expected in the month of September, according to a long-delayed reported released by the Commerce Department on Tuesday.

The Commerce Department said retail sales rose by 0.2 percent in September after climbing by 0.6 percent in August. Economists had expected retail sales to grow by 0.4 percent.

Excluding a dip in sales by motor vehicle and parts dealers, retail sales increased by 0.3 percent in September after advancing by 0.6 percent in August. Ex-auto sales were expected to rise by 0.4 percent.

A separate report released by the Labor Department on Tuesday showed producer prices in the U.S. increased in line with economist estimates in the month of September.

The Labor Department said its producer price index for final demand rose by 0.3 percent in September after edging down by 0.1 percent in August. The monthly price growth matched expectations.

The report also said the annual rate of growth by producer prices came in at 2.7 percent in September, unchanged from an upwardly revised reading in August.

Economists had expected the annual rate of producer price growth to tick up to 2.7 percent from the 2.6 percent originally reported for the previous month.

At 9 am ET, Standard & Poor's is scheduled to release its report on home prices in major metropolitan areas in the month of September. The annual rate of home price growth is expected to slow to 1.4 percent in September from 1.6 percent August.

The Conference Board is due to release its report on consumer confidence in the month of November at 10 am ET. The consumer confidence is expected to fall to 93.3 in November after dipping to 94.6 in October.

Also at 10 am ET, the National Association of Realtors is scheduled to release its report on pending home sales in the month of October. Pending home sales are expected to decrease by 0.4 percent in October after coming in unchanged in September.

The Commerce Department is also due to release its report on business inventories in the month of August at 10 am ET. Business inventories are expected inch up by 0.1 percent in August after rising by 0.2 percent in July.

At 1 pm ET, the Treasury Department is scheduled to announce the result of this month's auction of $70 billion worth of five-year notes.