Stock Market Today: Dow, S&P 500 Set to Open Up; DJT, Tesla ...

U.S. stock futures were pointing up early Tuesday after falling the previous two sessions on worries that the Federal Reserve will have to maintain high interest rates to keep inflation under control.

Dow Jones Industrial Average futures added 217 points, or 0.6%. Futures for the S&P 500 rose 0.2%, and those for the Nasdaq 100 were up 0.1%. All three indexes closed lower for a second straight session Monday.

A few big earnings reports came in better than expected before the market opened, including from Bank of America and UnitedHealth. On Monday, a beat on retail sales data showed that consumers are still spending.

On the other hand, those signs of strength may also mean that the Fed keeps interest rates higher than hoped, particularly if renewed tension in the Middle East pushes up energy prices. Worries about the Fed were reflected in rising bond yields Monday–the 10-year Treasury yield inched up to 4.641% early Tuesday.

The bigger issue is whether stocks are starting a broader correction, which could make them fall further. On the other hand, it could also be a bump in the road or of the bull market that has helped the S&P gain more than 20% over the past year.

“A stock market correction is unfolding right now triggered by Middle East tensions, rising bond yields and worries about delayed Fed rate cuts,” said James Demmert, chief investment officer at Main Street Research. “The magnitude of this stock market correction will depend in large part on what's going on in the Middle East.”

Demmert added that a correction is an opportunity to buy stocks.

“We are buyers of this stock market correction because while the headlines are scary right now, we believe we have entered a new bull market led by the power of artificial intelligence,” he noted. “This new bull market can last for another 7-9 years.”