U.S. equity-index futures advanced after the steepest two-day drop in more than six years pushed the Standard & Poor’s 500 Index into a correction.
Contracts on the S&P 500 due in September rose 1.4 percent to 1,898 as of 7:29 a.m. in London on Tuesday. Futures on the Dow Jones Industrial Average added 1.4 percent, while those on the Nasdaq 100 Index climbed 1 percent.
After a day of wild swings, the S&P 500 lost 3.9 percent Monday to cap a 7 percent two-day retreat, the most since December 2008, and enter its first correction since 2011. In early trading, the measure came within 34 points of setting off a marketwide circuit breaker that would’ve shut down trading for 15 minutes.
“U.S. shares started paring losses toward the end of the day, so we can look at it as panic selling having finished during the morning of U.S. trading hours,” said Norihiro Fujito, general manager of Mitsubishi UFJ Morgan Stanley Securities in Tokyo. “Shares are looking affordable, so we’re seeing a rebound and some are buying back.”