U.S. Stocks May See Further Upside After Yesterday's Surge

(RTTNews) - Following the substantial rally seen in the previous session, stocks may see further upside in early trading on Tuesday. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.2 percent.

The futures edged higher following the release of a Labor Department report showing consumer prices in the U.S. rose by slightly less than expected in the month of April.

The Labor Department said its consumer price index inched up by 0.2 percent in April after edging down by 0.1 percent in March. Economists had expected consumer prices to rise by 0.3 percent.

Excluding food and energy prices, core consumer prices also rose by 0.2 percent in April after creeping up by 0.1 percent in March. Core consumer prices were also expected to climb by 0.3 percent.

The report also said the annual rate of growth by consumer prices slowed to 2.3 percent in April from 2.4 percent in March, while the annual rate of growth by core consumer prices was unchanged at 2.8 percent.

The slightly tamer-than-expected inflation data may ease concerns about President Donald Trump's new tariffs on U.S. trade partners leading to higher prices.

Yesterday's news about a U.S.-China trade deal slashing steep tariffs on each other's goods may also lead to continued strength on Wall Street.

Stocks moved sharply higher during trading on Monday, more than offsetting the modest weakness seen in the previous week. With the strong upward move, the Nasdaq and the S&P 500 reached their best closing levels in over two months.

The major average saw further upside going into the close, reaching new highs for the session. The Nasdaq soared 779.43 points or 4.4 percent to 18,708.34, the S&P 500 spiked 184.28 points or 3.3 percent to 5,844.19 and the Dow surged 1,160.72 points or 2.8 percent to 42,420.10.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index jumped by 1.4 percent, while Hong Kong's Hang Seng Index tumbled by 1.9 percent.

Meanwhile, the major European markets have all moved modestly higher on the day. The French CAC 40 Index, the U.K.'s FTSE 100 Index and the German DAX Index are currently all up by 0.1 percent.

In commodities trading, crude oil futures are climbing $0.77 to $62.72 a barrel after jumping $0.93 to $61.95 a barrel on Monday. Meanwhile, after plummeting $116 to $3,228 an ounce in the previous session, gold futures are rising $17.90 to $3,245.90 an ounce.

On the currency front, the U.S. dollar is trading at 148.14 yen compared to the 148.36 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1115 compared to yesterday's $1.1087.