U.S. Stocks May Regain Ground After Yesterday’s Sell-Off

Following the sell-off seen in the previous session, stocks may move back to the upside in early trading on Wednesday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.5 percent.

Traders may see the sharp pullback during Tuesday’s session as a buying opportunity amid ongoing optimism about the outlook for the markets.

While yesterday’s inflation data further pushed back interest rate cut expectations, signs of continued strength in the economy is still expected to benefit the markets in the longer term.

Overall trading activity may be somewhat subdued, however, with a lack of major U.S. economic data likely to keep some traders on the sidelines.

Traders may be reluctant to make significant bets ahead of the release of an avalanche of data before the start of trading on Thursday.

The slew of data due to be released tomorrow includes reports on weekly jobless claims, retail sales, industrial production and import and export prices.

Among individual stocks, shares of Lyft (LYFT) are soaring in pre-market trading after the ride-hailing company reported better than expected fourth quarter results and provided upbeat guidance.

Investing platform Robinhood (HOOD) is also seeing significant pre-market strength after reporting fourth quarter results that exceeded analyst estimates on both the top and bottom lines.

On the other hand, shares of Akamai Technologies (AKAM) may come under pressure after the server network provider reported better than expected fourth quarter earnings but weaker than expected revenues.

Stocks moved sharply lower during trading on Tuesday, with the major averages all showing significant moves to the downside after ending Monday’s trading narrowly mixed. The Dow pulled back well off yesterday’s record closing highs.

The major averages climbed off their worst levels going into the close but still posted steep losses on the day. The Dow tumbled 524.63 points or 1.4 percent to 38,272.75, the…