Stock market live updates: Stock futures jump after two-day sell-off

U.S. stock futures rose sharply on Tuesday as Wall Street looked to shake off a two-day rout spurred by fears of sustained monetary tightening by the Federal Reserve to combat inflation.

Futures tied to the S&P 500 jumped 0.8% after the benchmark index shed roughly 4% across back-to-back losing days. Futures on the Dow Jones Industrial Average added 200 points, or about 0.7%, while Nasdaq futures rallied more than 1%.

In commodity markets, oil prices retreated amid renewed worries that a global recession would dent demand. West Texas Intermediate crude oil tumbled 2.7% to $94.39 per barre, while Brent futures plunged 3.4% to $101.48 per barrel.

Elsewhere in markets, shares of Bed Bath & Beyond Inc. (BBBY) rallied 11% in pre-market trading after a 25% jump in Monday’s session as investors await a strategic update from the company later this week. The meme stock has soared this month and is on pace for a record monthly gain in August after surging more than 170%.

A person exits a Bed Bath & Beyond store in Manhattan, New York City, U.S., June 29, 2022. REUTERS/Andrew Kelly

Shares of Chinese search engine Baidu (BIDU) jumped nearly 4% ahead of the open after reporting quarterly revenue on Tuesday that beat estimates, buoyed by growth in its cloud business. Investors cheered the results on even as the company unveiled its first annual contraction in quarterly revenue in two years.

Traders are in store for a busy economic calendar on Tuesday, with the Case-Shiller home price index, Conference Board’s Consumer Confidence reading, and JOLTS Job openings on tap. But the Labor Department’s monthly employment update will be the major event of the week.

“Stocks had a reasonable shot at a second-straight up week last Thursday, but the bearish reaction to Powell’s Jackson Hole speech pushed the market decisively into the red,” Chris Larkin, managing director of trading at Morgan Stanley’s E*TRADE said in a note. “While it’s a busy week of economic data, the job report on Friday will be the most watched as investors and the Fed get another read on the labor market.”

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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