U.S. equity futures advanced and stocks edged higher in Europe as bank shares rallied and bond yields climbed globally. Gold rebounded after finding support below $1,900 an ounce.
Contracts on the S&P 500 rose, with premarket gainers including Occidental Petroleum Corp., the gauge’s worst performer since late March. Nasdaq 100 futures also climbed after three sessions of declines for the tech-heavy gauge. Advances in ABN Amro Bank NV and HSBC Holdings Plc offset drops in tech and real estate shares on the Stoxx Europe 600 Index.
Silver halted its selloff with gold, as investors decided the flight from precious metals amid advancing bond yields had gone too far. Oil climbed close to a five-month high after an industry report pointed to a drop in American crude stockpiles.
Investors are weighing whether a rotation in equities is playing out as pandemic high-flyers including Advanced Micro Devices and Zoom Video Communications tumbled for a third day on Tuesday. Traders are also on the lookout for a break to the deadlock in Washington on more stimulus spending.
There’s some portfolio switching “given the constant flurry of concerns about crowded positioning and stretched valuations in growth sectors such as tech and communication services,” said Matthew Sherwood, head of investment strategy for multi-asset at Perpetual Investment. “Value and cyclicals continue to be supported by positive economic surprise momentum.”