Futures recover after a severe selloff on Wall Street.

Following a brutal selloff during the previous several sessions on fears of a recession brought on by rate hikes, which confirmed the Dow has been in a bear market for the majority of this year, U.S. stock index futures increased by roughly 1% on Tuesday.

The three major stock indices will end a five-day losing streak if gains hold through the opening bell, with rate-sensitive growth shares driving the rally in premarket trading.

As the U.S. 10-year Treasury yield (US10YT=RR) retreated from more than a decade high, Amazon.com Inc, Apple Inc, Microsoft Corp, Meta Platforms Inc, and Tesla Inc all saw gains between 1.1% and 2.1%.

Following a significant rise in crude prices, oil stocks got a boost, with Exxon and Chevron each rising 1.4%.

At 6:59 a.m. ET, the Nasdaq 100 e-minis were up 152.5 points, or 1.35%, while the S&P 500 e-minis were up 42.25 points, or 1.15%. The Dow was up 273 points, or 0.93%, at the time.

Wall Street has been shaken by worries about corporate profits being threatened by rising costs, a recession, and increased interest rates during the past two weeks, bringing the S&P 500 to new closing lows for the year on Monday.

Analysts have decreased their projected S&P 500 earnings for the third and fourth quarters as well as for the entire year 2022. In contrast to the 11.1% growth anticipated at the beginning of July, the overall S&P 500 earnings are projected to increase just 4.6% year over year for the third quarter.

On Monday, U.S. Federal Reserve officials dismissed growing market volatility, including falling U.S. stocks and foreign currency turmoil, and stated that controlling domestic inflation remained their top goal.

Charles Evans, president of the Chicago Fed, stated that the Fed will need to increase interest rates by at least another percentage point this year in order to combat excessive inflation.

By the first quarter of 2023, according to Wells Fargo analysts, the Federal Reserve will have increased its target range for the Fed funds rate to 4.75%-5.00%.

Investors will be keeping an eye out for statistics on consumer confidence for the month of August as well as August durable goods orders later in the day.