U.S. stock futures rose early Tuesday as markets attempted to rebound from a massive selloff a day earlier.
Futures for the Dow Jones Industrials jumped 104 points, or 0.4%, to 27,685.
Futures for the S&P 500 picked up 13 points, or 0.4%, at 3,406.50.
Futures for the NASDAQ Composite climbed 54.75 points, or 0.5%, to 11,547.
On Monday, equities plunged in their worst session since early September amid a surge in Covid-19 cases across the country. The Dow Jones Industrial Average fell 650 points, for its worst day since Sept. 3 and closing below 28,000 for the first time since Oct. 6.
With less than a week of trading left in October, the Dow is down slightly for the month and the S&P 500 is ahead 1.1%, and the NASDAQ is up 1.7%.
Technology shares bounced on Tuesday after AMD said it was buying rival Xilinx in a $35-billion all-stock deal in a push for the data center market. Xilinx led chip stocks higher in the premarket, gaining 10%. AMD shares slipped by 5%.
A slew of large-cap companies report quarterly earnings on Tuesday with manufacturing giant's 3M and Caterpillar set to release before the bell. Healthcare giants Eli Lilly, Merck & Co., and Pfizer also report before the opening bell. BP, Harley-Davidson, JetBlue and Raytheon Technologies also report Tuesday morning.
Wall Street is also gearing up for Microsoft earnings after the bell on Tuesday. The technology giant saw revenue grow 13% last quarter despite the pandemic. Advanced Micro Devices and Chubb also report following the close on Tuesday.
Fueling the weakness in the markets was a surge in Covid-19 cases in the U.S., compounded by diminishing hope of a stimulus package from Washington before the election, which is just one week away.
Friday and Saturday saw cases spike above 83,000, according to data from Johns Hopkins University. The data on Sunday also showed the country has reported a record average of 68,767 cases per day over the past seven days.
The Conference Board's Consumer Confidence Index for October will be released at 10 a.m. ET on Tuesday. Analysts are expecting a reading of 102.3, after September's reading of 101.8.
Overseas, in Japan, the Nikkei 225 lost eight points Tuesday, while in Hong Kong, the Hang Seng index dipped 0.5%.
Oil prices hiked 39 cents to $38.95 U.S. a barrel.
Gold prices slipped $1.50 to $1,904.20.