US stock futures rise after big fall
Aug 9, 2011 8:59:00 AM - thestate.com
U.S. stock futures rose Tuesday, but only after swinging wildly in overnight trading following the worst day for stocks since 2008.
The Federal Reserve plans to meet Tuesday on interest-rate policy. The central bank already has kept its key interest rate at a record low of nearly zero since 2008. It has also pledged to keep rates low "for an extended period."
European strategists said speculation about more stimulus coming from the U.S. helped their markets recover from steep losses earlier Tuesday.
The Fed in June completed a $600 billion program to buy Treasury bonds in support of the economy. Some Fed officials oppose another round of so-called "quantitative easing" because it could lead to higher inflation.
Dow Jones industrial average futures were down more than 200 points early Tuesday, following Asian markets lower. The Hang Seng index in Hong Kong fell 5.7 percent after China's inflation rose to a 37-month high in July. The drops in Asian markets continued a rout in global stocks following a 634.76 point plunge for the Dow on Monday.
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