After experiencing significant losses over the past three days, the stock market is showing signs of a potential rebound on Tuesday. However, the expected rise is not as substantial as initially anticipated.
Dow futures have increased by 130 points, while S&P 500 futures and Nasdaq futures have risen by 0.4% each. These gains, although positive, indicate a more cautious recovery at the opening bell compared to earlier projections when Dow futures were up by around 400 points.
The prevailing theme in the market continues to be one of volatility and fear. The Fear & Greed Index reflects a sentiment of 'Extreme Fear' on Tuesday morning, underscoring the prevailing apprehension among investors. Additionally, the VIX volatility index reached a four-year high recently, as concerns persist regarding a potential slowdown in the US economy, the Federal Reserve's stance on rate cuts, and increased scrutiny of the tech sector.
Overall, while the modest gains in futures suggest a slight improvement in market sentiment, the underlying unease and uncertainty remain prevalent. Investors are closely monitoring developments and reacting to the evolving economic landscape with caution.
