U.S. stock index futures climbed on Tuesday, with investors buying into beaten-down banks and megacap growth stocks after a three-day selloff on fears around tighter monetary policy and slowing economic growth.
Apple Inc, Microsoft Corp, Meta Platforms , Amazon.com, Google owner-Alphabet Inc and Tesla Inc rose between 1.2% and 2.5% in premarket trading.
Goldman Sachs Group added 1.3% to lead gains among the big banks.
On Monday, the benchmark S&P 500 index ended below 4,000 for the first time since late March 2021 and the Nasdaq dropped more than 4%.
Both the indexes have dropped about 16% and 26%, respectively, this year due to the war in Ukraine, China's COVID-19 lockdowns roiling global supply chains and rising bond yields as traders adjust to higher U.S. interest rates.
The quick rise in yields, the war-related trouble in oil markets and other factors have already strained some parts of the financial system, the Federal Reserve reported on Monday in a biannual update that warned of a system poised for potentially "sudden" disruption.
Meanwhile, a closely watched inflation report due on Wednesday is expected to show consumer prices increased at a slower pace in April.
At 6:43 a.m. ET, Dow e-minis were up 281 points, or 0.87%, S&P 500 e-minis were up 39.75 points, or 1%, and Nasdaq 100 e-minis were up 176.5 points, or 1.45%.
A slew of Fed policymakers are also scheduled to speak later in the day, with investors parsing for clues on future path of interest rates.
Among other stocks, Novavax Inc plunged 22.5% after the vaccine maker revealed a sharp drop in first-quarter COVID-19 research funding and said it shipped less than a fourth of the total vaccine deliveries slated for 2022.
AMC Entertainment added 4.2% after it posted better-than-expected quarterly revenue and a narrower loss, as the release of big-ticket films such as "The Batman" drew crowds to movie halls of the world's largest theater chain.
(Reporting by Amruta Khandekar in Bengaluru; Editing by Sriraj Kalluvila)