After Monday's significant drops in both Asian and U.S. markets, S&P futures are indicating a higher open today, up +0.9% following Asian markets' strong rebounds today. Japan's Nikkei surged over +10% in its largest single-day rise, and Topix climbed 9.3%. The top story today is the better-than-expected US ISM services data, which appears to have eased concerns over a hard landing fueled by last week's soft ISM manufacturing and US payrolls data. This has led to a risk-on session attributed to oversold conditions. While growth risks have increased, economists do not see recession as the base case. Analysts suggested the equity market meltdown was more due to a wind-down of carry trades than a change in the US economic outlook. However, the respite might be temporary as the VIX index remains elevated, signaling potential volatility ahead.
Companies Mentioned: Warner Bros. Discovery, Vornado Realty Trust (NYSE:VNO)