US stock futures rallied slightly during Tuesday night trading, following a strong market rally as Reddit’s trading craze continued to wane.
Dow futures were up 60 points. S&P 500 futures gained 0.4% and Nasdaq 100 futures were up 0.4%.
Strong gains from Amazon and Alphabet helped futures. Amazon reported profits nearly doubled in Wall Street estimates; However, the stock movement was dampened by the news that Jeff Bezos would step down as CEO.
Shares of Alphabet were up 6% in non-business hours trading after the tech giant reported 23% revenue growth and beat earnings expectations.
Stocks rebounded for the second day on Tuesday, with the Dow Jones Industrial Average hitting more than 475 points for its best day since November. Investors returned to buying stocks after the Reddit-powered move that shook the markets last week. The Dow is up 2.35% this week.
The S&P 500 climbed 1.4% and the Nasdaq Composite jumped more than 1.5%.
After a rapid, if seemingly synthetic, gains from GameStop last week caused by a brief push, stocks are more than 70% cratered this week. Other Reddit trades have also returned to Earth amid trading restrictions from major brokers.
“The best way to describe the current stock market action is to ‘reverse the Reddit revolution,'” Jim Paulsen, chief investment strategist at the Leuthold Group, told CNBC. “What went with GameStop came down with GameStop.”
“From the middle of the day of January 28 to the end of January 29, cyclical stocks, including technology, were bumped hard while defensive sectors accelerated. In the past two days, and especially today, this has been reversed,” added Paulsen.
Investors are also following negotiations in Washington on a different stimulus package. President Joe Biden met with 10 Republican senators on Monday to discuss an alternative, smaller aid proposal for his $ 1.9 trillion package.
The earnings season continues Wednesday with AbbVie, Biogen, Boston Scientific, GlaxoSmithKline and Humana reporting for the opening bell.
Chipmaker Qualcomm, eBay, PayPal and Yum China report gains after the market closed on Wednesday.
Private January salary data will be released by ADP Wednesday at 8.15am. Economists polled by Dow Jones expect private sector jobs to increase by 50,000 in January, compared to the loss of 123,000 in December.
Subscribe to CNBC PRO for exclusive insights and analysis, and live programming of working days from around the world.