By Sara Sjolin, MarketWatch

Is Tuesday's rise just a dead cat bounce?

The Dow Jones Industrial Average, and the broader stock market, was poised on Tuesday to mark its first day of gains since shedding nearly 900 points in the aftermath of the U.K.'s vote on Friday to quit the European Union.

Futures for the Dow Jones Industrial Average jumped 194 points, or 1.2%, to 17,179 in early trade. Those for the S&P 500 index gained 20.60 points, or 1%, to 2,005.75, while futures for the Nasdaq-100 index climbed 45.25 points, or 1.1%, to 4,223.25.

The gains come after a brutal, two-day rout in global equities that resulted in months of gains washed away 72 hours following Britain's referendum to leave the EU, known as Brexit. Rattled investors feared that Brexit would destabilize the European trading bloc.

"After two days of rather drastic selling pressure in the wake of Brexit, there are signs that markets may be settling for a bit of respite as risk appetite improves," said Richard Perry, analyst at Hantec Markets, in a note.

Despite the change in momentum for equities, investors were cautious about the staying power of the early gains given the severity and swiftness of the recent slide, which pushed the Dow and the S&P 500 below their 200-day moving average (http://www.marketwatch.com/story/dow-sp-500-drop-below-200-day-moving-average-joining-other-major-stock-market-indexes-2016-06-27)--a key technical threshold that signals long-term downtrends and uptrends.

"The concern would be that this is just a 'dead cat bounce' and traders simply see this as another chance to sell. However, for now the outlook is a little more positive," he added.

A "dead cat bounce" refers to a brief rebound in stocks after a substantial fall, usually followed by a continuation of the selloff.

Global markets were sent on a roller-coaster ride last week, when 52% of voters in the U.K. unexpectedly backed a Brexit.

S&P Global Ratings on Monday stripped the U.K. of its AAA credit rating (http://www.marketwatch.com/story/sp-strips-uks-aaa-credit-rating-on-brexit-vote-2016-06-27), while Fitch Ratings lowered the U.K.'s credit rating to AA (http://www.marketwatch.com/story/fitch-cuts-uks-rating-to-aa-cuts-2016-gdp-growth-outlook-2016-06-27)from AA+ in the wake of the U.K. referendum.

The pound slumped to a 31-year low after the Brexit vote, and U.S. stocks on Monday (http://www.marketwatch.com/story/us-stocks-set-for-losses-as-brexit-backlash-continues-2016-06-27) ended with sharp losses for a second day. The S&P 500 index slid 1.8%, the Nasdaq Composite Index slumped 2.4%, and the Dow industrials lost 1.5%.

Economic news: In the U.S., attention will Tuesday turn to domestic economic growth, with a reading on first-quarter gross domestic product due out at 8:30 a.m. Eastern Time. Economists polled by MarketWatch forecast an upward revision to 1.1% from a previous estimate of 0.8%.

At 9 a.m. Eastern, the Case-Shiller home price index for April is due, followed by consumer confidence data for June an hour later.

Federal Reserve Governor Jerome Powell will give a speech about the economy at the Chicago Council on Global Affairs in Chicago at 7 p.m. Eastern.

See:

Movers and shakers: Shares of Tesla Motors Inc.(TSLA) climbed 1% ahead of the bell. SolarCity Corp.(SCTY) late Monday said it would form a two-person committee of independent board members to evaluate the electric-car maker's buyout offer for the solar panel company. Shares of SolarCity rose 2.8%.

Regulus Therapeutics Inc.(RGLS) tanked 51% ahead of the bell after the biopharmaceutical company late Monday said the Food and Drug Administration has placed (http://www.marketwatch.com/story/regulus-therapeutics-set-to-fall-after-fda-places-hepatitis-c-treatment-on-hold-2016-06-27) its investigational new drug for the treatment of chronic hepatitis C virus infection on clinical hold.

LendingClub Corp.(LC) gained 5.8% premarket after fintech company said it'd eliminate almost 200 jobs (http://www.marketwatch.com/story/lendingclub-to-cut-nearly-200-jobs-2016-06-28).

Shares of ReachLocal Inc.(RLOC) soared 170% premarket after Gannett Co.(GCI) late Monday said it is buying the digital marketing company for $4.60 a share (http://www.marketwatch.com/story/gannett-agrees-to-acquire-digital-marketing-company-reachlocal-2016-06-27). ReachLocal closed at $1.69 a share on Monday.

FactSet Research Systems Inc.(FDS) may also be active after the market-data supplier reported a rise in fiscal third-quarter earnings (http://www.marketwatch.com/story/factset-profit-rises-in-line-with-expectations-2016-06-28).

U.S.-listed shares of U.K. banks were also among big premarket movers, as the sector rebounded from dramatic losses posted on Friday and Monday. Shares of Lloyds Banking Group PLC (LLOY.LN) (LLOY.LN) jumped 6.5% premarket, while Royal Bank of Scotland Group PLC(RBS.LN) (RBS.LN) rose 4.1%.

Cruise-operator Carnival Corp.(CCL) is slated to report earnings ahead of the bell, while Nike Inc.(NKE) releases results after the market closes.

Other markets: European stock markets climbed across the board, with the Stoxx Europe 600 index up 2.6%.

Asia markets also rebounded (http://www.marketwatch.com/story/nikkei-rebounds-post-brexit-leads-asian-stocks-higher-2016-06-27) after getting slammed in the wake of last week's Brexit vote.

Oil prices rallied (http://www.marketwatch.com/story/oil-rebounds-after-brexit-fueled-selloff-as-optimism-creeps-back-2016-06-28) more than 2%, while gold dropped as investors moved out of assets considered havens. The ICE dollar index lost 0.6% to 95.973.

(END) Dow Jones Newswires

June 28, 2016 08:12 ET (12:12 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.