By Investors Hub
The major U.S. index futures are pointing to a higher opening on Wednesday following the sell-off seen in the previous session.
Bargain hunting may contribute to strength on Wall Street, as some traders pick up stocks at reduced levels after the steep drop seen on Tuesday.
However, lingering concerns about political uncertainty in Italy may keep some traders from getting back into the markets.
Following the long holiday weekend, stocks moved sharply lower during trading on Tuesday. The major averages moved lower early in the session and saw further downside as the day progressed.
The major averages climbed off their worst levels going into the close but still ended the day firmly in negative territory. The Dow plunged 391.64 points or 1.6 percent to 24,361.45, the Nasdaq fell 37.26 points or 0.5 percent to 7,396.59 and the S&P 500 tumbled 31.47 points or 1.2 percent to 2,689.86.
The sell-off on Wall Street came as traders used concerns about political uncertainty in Italy as an excuse to sell stocks.
Italy’s president has appointed a former International Monetary Fund official as interim prime minister with the task of planning for snap polls and passing the next budget after weeks of uncertainty.
Banking stocks turned in some of the market’s worst performances on the day, dragging the KBW Bank Index down by 3.9 percent.
Steel, brokerage, and telecom stocks also saw considerable weakness, moving lower along with most of the other major sectors.
Adedapo Adesanya