Stock futures pushed higher on Tuesday and were on track to snap Wall Street's two-day selloff driven by the Brexit shock.
S&P 500 futures were up 1.1%, Dow Jones Industrial Average futures rose 1.2%, and Nasdaq futures climbed 1.2%.
The S&P 500 fell more than 5% over the past two days after the United Kingdom voted to leave the European Union. The move has far-reaching political and economic consequences as new trade deals and regulations begin to get drawn up over the next two years. Both Standard & Poor's and Fitch lowered their ratings on U.K. debt on Monday.
The two-day selloff in global markets wiped out $3 trillion in market capitalization on the Brexit shock. The pound plummeted to its lowest level in 30 years on Monday, driving the greenback higher and pushing crude oil prices to their worst settlement in a week.
The British government has abandoned plans to sell its stakes in Royal Bank of Scotland (RBS) and Lloyds Banking Group (LYG) this year in the wake of the Brexit vote, according to sources, Reuters reported. The government had hoped to reduce its exposure to the banks it took over during the financial crisis, raising roughly 9 billion euros through stock sales.
Talk of further accommodation from global central banks appeared to boost investor appetite on Tuesday. Hopes have begun to rise that the Bank of England and the Bank of Japan could offer further stimulus in the wake of the uncertainty in Europe. Since Friday, the chances of a rate hike from the Federal Reserve this year have become unlikely, according to CME Group fed funds futures.
First-quarter U.S. gross domestic product was raised to 1.1% growth in the third and final reading on Tuesday morning. First-quarter GDP has previously been estimated at 0.8%. Consumer spending was reduced, while exports were revised to show a slight gain over a previously estimated decline.
The U.S. economy suffered an economic slowdown at the beginning of the year as cautious consumers opted to save rather than spend, a strong U.S. dollar and weaker overseas demand hampered U.S. manufacturing, and energy prices continued to weigh on the sector.
The cost to settle Volkswagen's (VLKAY) numerous lawsuits in the U.S. over an emissions-cheating investigation has increased to more than $15 billion, one-third higher than previously expected. The German automaker is expected to come to another settlement with a San Francisco court on Tuesday which could involve buybacks for 475,000 affected vehicles and $5 billion in fines.
SolarCity's (SCTY) board has appointed a two-person committee to ensure Tesla's (TSLA) proposal to acquire all of the remaining SolarCity common stock is fairly evaluated, Re/code reported. Tesla announced plans last week to buy all of SolarCity's common stock, a move some described as a bailout given Elon Musk's position as chairman to both companies.
Lending Club (LC) climbed in premarket trading after announcing plans to cut 179 positions. The peer-to-peer lender has been under pressure since May when CEO Renaud Laplanche stepped down over an investigation into its lending practices. The job cuts are tied to lower loan volumes over the current quarter. The company also said acting CEO Scott Sanborn would become its permanent CEO and president.
ReachLocal (RLOC) rocketed higher after receiving a buyout offer from Gannett (GCI) . Gannett intends to purchase the digital marketing company for $4.60 a share. The deal has a total worth of roughly $156 million and is expected to close in the third quarter.