US index futures rose in pre-market trading on Tuesday, signaling a recovery after one of the worst days for markets in nearly two years. Earnings season continues, with Palantir (NYSE:PLTR) and Lucid Group (NASDAQ:LCID) showing strong pre-market performances, partially easing the negative sentiment.

At 4:37 AM, Dow Jones futures (DOWI:DJI) rose 195 points or 0.50%. S&P 500 futures gained 0.80%, and Nasdaq-100 futures advanced 0.89%. The 10-year Treasury yield was at 3.871%.

In the commodities market, oil prices trimmed earlier losses due to supply concerns related to the growing Middle East conflict, strong US services sector data, a slight recovery in Asian equity markets, and a production cut at the Sharara field in Libya. West Texas Intermediate crude for September rose 0.11% to $73.02 per barrel. Brent crude for October fell 0.03% to near $76.28 per barrel.

On the US economic calendar for Tuesday, the June trade deficit will be released at 8:30 AM. Estimates point to a deficit of -$72.5 billion.

Asia-Pacific markets had strong fluctuations. Japan’s Nikkei 225 rose 10.23%, marking its biggest daily gain since 2008, following a sharp previous drop. The Topix advanced 9.3%. South Korea’s Kospi increased by 3.3%, and the Kosdaq rose by 6.02%. Australia’s S&P/ASX 200 closed up 0.41%. In contrast, China’s Shanghai Composite and Hong Kong’s Hang Seng showed little change, varying by +0.23% and -0.15%, respectively.

In Japan, June consumer spending fell 1.4% year-over-year, exceeding the forecasted 0.9% drop. Seasonally adjusted monthly terms showed a 0.1% increase, below the estimated 0.2% rise. Average income rose 3.1% and real wages increased 1.1%, indicating more room for monetary tightening. A Japanese Labor Ministry panel decided to raise the minimum wage by 5% to 1,054 yen ($6.85) per hour, the largest increase on record. This adjustment aims to stimulate inflation and wage growth, though it may negatively impact small business profits. The new rate will be implemented in October.

The Reserve Bank of Australia maintained the cash rate at 4.35% and revised its 2024 growth and inflation forecasts.

European markets are trading higher, recovering from Monday’s lows, with major sectors showing advances, particularly in travel and leisure. Today, EU retail sales data and earnings from major companies will be released.

Bayer (TG:BAYN) shares are down 0.6% after reporting a 1% revenue increase to €11.14 billion, but EBITDA fell 16.5% due to challenges in the agricultural sector. The pharmaceutical division saw positive momentum despite generic competition. Aramco reported a net profit of $29.1 billion in Q2, a 3% year-over-year decline due to low production volumes. Half-year profit was $56.3 billion, down from $62 billion last year. The company maintained robust dividends and expects to pay $124.2 billion in 2024.

US stocks fell sharply on Monday, with the Nasdaq and S&P 500 hitting three-month lows. The Dow Jones plunged 2.60%, the S&P 500 dropped 3.00%, and the Nasdaq fell 3.43%. The sell-off was triggered by recession concerns following a disappointing jobs report. Major tech stocks, such as Nvidia (NASDAQ:NVDA) (-6.4%) and Apple (NASDAQ:AAPL) (-4.8%), also saw significant declines. The services PMI index rose to 51.4 in July, indicating growth and offering some relief to investors.

For Tuesday’s quarterly earnings releases, before the market opens, reports are expected from Uber Technologies  (NYSE:UBER), Celsius Holdings  (NASDAQ:CELH), fuboTV  (NYSE:FUBO), Caterpillar  (NYSE:CAT), Baxter International  (NYSE:BAX), Vulcan Materials Company  (NYSE:VMC), Allegheny Technologies Incorporated  (NYSE:ATI), Constellation Energy Group  (NASDAQ:CEG), Marathon Petroleum Corp.  (NYSE:MPC), Owens Corning Inc  (NYSE:OC), CLEAR Secure  (NYSE:YOU), Organon  (NYSE:OGN), Duke Energy Corp.  (NYSE:DUK), Zoetis  (NYSE:ZTS), GXO Logistics  (NYSE:GXO), Yum! Brands  (NYSE:YUM), Planet Fitness  (NYSE:PLNT), Kenvue  (NYSE:KVUE), Builders FirstSource  (NYSE:BLDR), and more.

After the close, numbers are expected from Wynn Resorts Ltd  (NASDAQ:WYNN), Supermicro  (NASDAQ:SMCI), Rivian Automotive  (NASDAQ:RIVN), Airbnb  (NASDAQ:ABNB), Devon Energy Corp.  (NYSE:DVN), Reddit  (NYSE:RDDT), GigaCloud Technology Inc  (NASDAQ:GCT), Upstart Holdings  (NASDAQ:UPST), Amgen  (NASDAQ:AMGN), Axon Enterprise  (NASDAQ:AXON), AMSC  (NASDAQ:AMSC), Fortinet  (NASDAQ:FTNT), Lumen Technologies  (NYSE:LUMN), Illumina  (NASDAQ:ILMN), VF Corp  (NYSE:VFC), Coupang  (NYSE:CPNG), among others.