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Investing.com – U.S. stocks are set to open at a two-month high on Tuesday, with Wall Street returning the Memorial Day holiday to see more countries opening up, strengthening hopes that the global economy is moving towards a recovery.
At 7 AM ET (1100 GMT),S&P 500 Futures traded 55 points, or 1.9%, higher, Nasdaq Futures up 166 points, or 1.8%. The Dow Futures contract rose 491 points, or 2%.
U.S. financial markets were shut Monday for Memorial Day.
The New York Stock Exchange will mark its own reopening milestone on Tuesday as it partially reopens its trading floor.
Earlier Tuesday, Japan, the third largest economy in the world, lifted its state of emergency after a marked fall in new coronavirus cases in Tokyo and other hard-hit regions. The Nikkei 225 closed up 2.6%, to hit a new one month high.
In Europe, Spain, one of the hardest hit countries in the region, will welcome tourists from July 1 with no quarantine, while Germany could lift all travel restrictions in Europe by mid June, according to a report. In the U.K. all non-essential retailers will be able to reopen in England from June 15.
Adding to the positivity is the news that American biotech company Novavax (NASDAQ:NVAX) said it has begun trials for a coronavirus vaccine in Australia. The company’s stock is over 18% higher premarket.
All of this has tended to overshadow the simmering tensions between Washington and Beijing, including Chinese President Xi saying his country will step up preparedness for military combat, as well as a warning from the World Health Organization that countries with declining numbers of Covid-19 cases could still see an “immediate second peak”.
The first quarter earnings season is continuing to wind down, with retailers again the main companies reporting this week. Costco (NASDAQ:COST), Dollar General (NYSE:DG), Nordstrom (NYSE:JWN), Ulta Beauty (NASDAQ:ULTA) and Burlington Stores (NYSE:BURL) are among some of the companies reporting earnings.
Economic data are thin on the ground Tuesday, with the main release being the publication of the Conference Board’s consumer confidence index for May. Confidence plunged to a record low in April as tens of millions of Americans lost their jobs in response to lockdown orders across the country.
Elsewhere, oil futures pushed higher, helped by the reopening of the Japanese economy, signs of more travel in Europe and the news that India will start domestic flights. Closer to home, Delta Air Lines (NYSE:DAL) stock was up 6.0% despite the bankruptcy filing of Latam, the carrier in which it bought a 20% stake last year for $1.9 billion.
At 7 AM ET, U.S. crude June futures traded 2.6% higher at $34.12 a barrel. The international benchmark Brent contract rose 1.6% to $36.09.
Elsewhere, gold futures fell 0.6% to $1,725.85/oz, while EUR/USD traded at 1.0953, up 0.5%.
