US Stocks plunged Monday, but futures trading suggests a rebound — or a least a respite — on Tuesday.
Dow Jones Industrial Average futures YM00, +0.43% rose more than 200 points on Tuesday, while S&P 500 futures ES00, +0.53% gained 0.8% and Nasdaq Composite futures NQ00, +0.77% added more than 1%
A pause or bounce-back would not be unusual. The past 10 times that the S&P 500 index fell by as much as 3%, for example, it declined just 0.27%, on average, in the next trading session, according to Dow Jones Market Data.
Researchers at Bespoke Investment Group also said Monday that, over the past 11 years, declines of more than 2% for the S&P 500 have tended to see healthy rebounds, particularly when that daily slide happens on a Monday. “Since March 2009, there have been 18 prior 2%+ drops on Mondays, and SPY has seen an average gain of 1.02% on the next day (Turnaround Tuesday),” they wrote.
