Futures climb after recent declines on Wall Street

As investors returned from the Labor Day holiday weekend to buy undervalued equities following last week’s selloff due to concerns about monetary policy tightening, U.S. stock index futures increased on Tuesday.

Markets began September on a shaky note as concerns over ad hoc interest rate hikes to curb inflation were stoked by hawkish remarks from Federal Reserve members and data indicating economic momentum in the United States.

The benchmark S&P 500 has lost about 18 percent of its value so far this year and finished Friday at a six-week low.

In 2022, the tech-heavy Nasdaq is down roughly 27 percent as rising interest rates damaged megacap technology and growth stocks, which also caused the index to close the day at a six-week low on Friday. In premarket trade, shares of Apple Inc, Tesla, and Microsoft Corp all saw gains of roughly 1%.

Data from the previous week indicated that both the job market and manufacturing activity were resilient, indicating that the Fed would need to keep hiking interest rates in the months to come. At the Fed meeting later this month, there is a nearly 70% chance of a third rate hike of 75 basis points.

At 10:00 a.m. ET, the Institute for Supply Management will release its study of the services sector’s activities in August. Expectations for monetary policy prior to the September meeting may also be influenced by U.S. consumer pricing data released next week.