Stock futures rise 1% after Nasdaq notches best day since July

Stock futures rose Tuesday morning after the Nasdaq Composite posted its best daily performance since July.

Futures tied to the Dow Jones Industrial Average gained 373 points or 1.23%. S&P 500 futures jumped 1.46% and Nasdaq 100 futures climbed 1.7%.

The moves came after a winning day on Wall Street. The Dow Jones Industrial Average popped about 550 points, coming off a volatile past week of trading. The S&P 500 also rose 2.65% for the day. The Nasdaq surged 3.43% as tech stocks rebounded, led by names such as Amazon, Meta Platforms and Microsoft. It was the best day for the tech-heavy index since July 27.

Solid earnings reports sent stocks higher. Bank of America rose 6.06% after delivering better than expected results, and Bank of New York Mellon gained 5.08% after its own earnings beat.

In addition, another pivot from the U.K. bolstered markets. Jeremy Hunt, the new U.K. finance minister, announced Monday that he would reverse nearly all announced tax cuts and walk back an energy subsidy.

Investors are watching for any sign that the stock market has bottomed and the new rally may be the start of a new bull cycle. Analysts aren’t so sure that the bottom is in, however, and many see more pain ahead.

“I think this is going to be one of those bear market rallies that has people scratching their heads,” said Guy Adami, director of advisor advocacy at Private Advisor Group in Morristown, New Jersey, on CNBC’s “Fast Money,” adding that markets are nowhere near out of the woods when it comes to the bear market.

More big bank earnings are on deck. Tuesday morning, Goldman Sachs will report its quarterly results. Johnson & Johnson, Netflix and United Airlines will also announce results that day. Later in the week, Tesla, IBM and American Airlines report.