Stock futures up 1% after Nasdaq’s best day since July

Wells Fargo's Chris Harvey says bear market rally has further upside

Stock futures rose early Tuesday after the Nasdaq Composite posted its best one-day performance since July.

Futures linked to the Dow Jones Industrial Average rose 432 points, or 1.43%. S&P 500 futures rose 1.65% and Nasdaq 100 futures rose 1.85%.

The moves come a day after Wall Street won. The Dow Jones Industrial Average has surged about 550 points in volatile trading over the past week. The S&P 500 also rose 2.65% on the day. The Nasdaq surged 3.43% as tech stocks rebounded, led by the likes of Amazon, Meta Platforms and Microsoft. It was the best day for the tech index since July 27.

A solid earnings report pushed stocks higher. Bank of America rose 6.06% after better-than-expected results, while Bank of New York Mellon rose 5.08% after its own earnings beat estimates.

Also, another pivot from the UK lifted the market. Britain’s new finance minister, Jeremy Hunt, announced on Monday that he would roll back almost all announced tax cuts and remove energy subsidies.

Investors are watching for any signs that the stock market has bottomed and a fresh rally could be the start of a new bull market cycle. However, analysts aren’t sure if the bottom has been reached, and many see more pain ahead.

“I think it’s going to be one of those bear market rallies that gets people scratching their heads,” Guy Adami, director of advisory advocacy at Private Advisor Group in Morristown, N.J., said on CNBC’s “Fast Money.” In a bear market, they are far from out of the woods.

More big bank gains are in the pipeline. On Tuesday morning, Goldman Sachs will report its quarterly results. Johnson & Johnson, Netflix and United Airlines will also report results on the day. Later this week, reports from Tesla, IBM and American Airlines.

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