Stock Futures rise on oil gains, easing of lockdowns

New York (May 5)  U.S. stock index futures rose on Tuesday, building on gains in the previous session, as oil prices jumped and a slew of countries eased coronavirus-led restrictions in an attempt to revive their economies.

Hopes for a recovery in demand boosted oil prices, helping energy giants Exxon Mobil Corp (XOM.N) and Chevron Corp (CVX.N) lead gains among the blue-chip Dow components .DJI trading premarket.

Countries including Italy as well as some U.S. states are tentatively lifting some restrictions this week but at the risk of a second wave of infection as global deaths surpassed a quarter of a million.

The S&P 500 .SPX has climbed about 30% from its March lows on the back of unprecedented stimulus measures and signs of a plateau in new COVID-19 cases in many areas.

However, many market experts have warned that the rally could be tested amid a risk of another wave of virus infections and with growing evidence of the damage to economy and corporate America.

Wall Street’s main indexes snapped their two-day losing streak on Monday as gains in large tech and internet companies and oil prices outweighed concerns about the latest U.S.-China tensions and downbeat sentiment from the annual meeting of Warren Buffett’s Berkshire Hathaway.

On the economic calendar, ISM’s survey of the non-manufacturing sector is due for release at 10 a.m. ET.

At 6:13 a.m. ET, Dow e-minis 1YMcv1 were up 252 points, or 1.07%. S&P 500 e-minis EScv1 were up 28.25 points, or 1% and Nasdaq 100 e-minis NQcv1 were up 91.75 points, or 1.04%.

SPDR S&P 500 ETFs (SPY.P) were up 0.8%.

The S&P 500 index closed up 0.4% at 2,842.74 on Monday.

Reuters