Stocks are poised for an upward trajectory as Tuesday's trading kicks off, potentially recovering from the previous session's downturn. The major index futures suggest a bullish opening for the markets, with the S&P 500 futures advancing by 0.3 percent.
Investors might be inclined to acquire technology stocks at slightly discounted prices following Monday's sector-wide sell-off. Notably, Nvidia (NVDA) shares are experiencing a 3.3 percent pre-market surge after plummeting by 17.0 percent in the prior session.
Nonetheless, enthusiasm among buyers may be tempered as attention shifts to the Federal Reserve's impending monetary policy announcement on Wednesday. While it is widely anticipated that the Fed will maintain current interest rates, market participants will be scrutinizing the accompanying statement for any indications of future rate movements.
Recent economic indicators have sparked concerns about the Fed maintaining rates for an extended period. However, several economists anticipate the central bank will recommence rate cuts within the first half of the year. According to CME Group's FedWatch Tool, there is a 74.5 percent probability that rates will decrease by at least a quarter point following the Fed's June meeting.
In other U.S. economic news, the Commerce Department released a report revealing an unexpected downturn in new orders for manufactured durable goods in December, largely due to a significant drop in orders for transportation equipment. Durable goods orders fell by 2.2 percent in December, subsequent to a revised 2.0 percent decline in November. Economists had predicted an increase of 0.8 percent, contrasting with the initially reported 1.2 percent decrease for the previous month.
Excluding the sharp decline in transportation orders, durable goods did see a 0.3 percent rise in December, following a slight 0.2 percent decrease in November. Expectations had been for a 0.4 percent increase in these ex-transportation orders.
The prior session saw U.S. stocks closing predominantly lower, with technology stocks experiencing more significant losses due to persistent selling pressure. The Dow Jones concluded the day up 289.33 points, or 0.7 percent, at 44,713.58. Conversely, the S&P 500 fell by 88.96 points, or 1.5 percent, ending at 6,012.28, while the Nasdaq took a steep dive of 612.47 points, or 3.1 percent, closing at 19,341.83.
Internationally, stock markets across the Asia-Pacific exhibited mostly downward movement, with major markets shut for holidays. Japan's Nikkei 225 Index decreased by 1.4 percent, whereas Australia's S&P/ASX 200 Index slightly dipped by 0.1 percent.
Conversely, European markets have shown an upward trend today. Germany's DAX Index has risen by 0.8 percent, the U.K.'s FTSE 100 Index by 0.6 percent, and France's CAC 40 Index by 0.5 percent.
In the commodities sector, crude oil futures climbed $0.92 to reach $74.09 per barrel after a previous drop of $1.49, settling at $73.17 per barrel. Meanwhile, gold futures are up $12.90 to $2,751.30 an ounce, following a drop of $40.50 to $2,378.40 an ounce in the last session.
On the currency market, the U.S. dollar is trading at 155.39 yen, up from 154.51 yen at Monday's New York close. Against the euro, the dollar now stands at $1.0424, compared to $1.0492 the previous day.