U.S. stock index futures were up sharply ahead of Tuesday’s open following the long holiday weekend.
Dow Jones industrial average futures rose 230 points, setting up the 30-stock index to break above 26,000 for the first time. S&P 500 and Nasdaq 100 futures gained 12.5 points and 42 points, respectively.
On Monday, U.S. markets were closed for trade for Martin Luther King Jr., Day. Markets overseas Tuesday, meanwhile, were mostly posting gains.
U.S. stocks have been rallying on the back of a stronger U.S. economy, tax reform, and optimism heading into earnings season.
During the last session on Friday, stocks hit record highs, with the Dow closing more than 200 points higher.
Citigroup and CSX are some of the major companies posting results before the bell. Earlier on Tuesday, UnitedHealth posted better-than-expected earnings and sales.
Earnings season is off to a strong start thus far. Of the S&P 500 companies that have reported, 69 percent have surpassed earnings-per-share estimates while 85 percent have beaten expectations on the top line, according to FactSet.
Many of their employees will also see more after-tax pay, resulting from the increase in the standard deduction and the lowering of individual tax rates.
In data, the latest Empire State Manufacturing survey is set to report at 8:30 a.m. ET.
Elsewhere, cryptocurrencies were in focus as bitcoin hit a six-week low,following reports indicating an escalated crackdown on the cryptocurrency market in China. Bitcoin sank below $12,000.
The euro hovered near a three-year peak amid heightened expectations the European Central Bankmay soon pare its monetary stimulus. The U.S. dollar has been showing some signs of weakness in recent sessions.
Markets will also be keeping a close eye on bond markets, after investors analyzed the risk of China halting its Treasury bond purchases last week.
Bloomberg reported last Wednesday, citing people familiar with the matter, that officials in Beijing had recommended that China’s government lower — or even potentially cease — buying U.S. sovereign debt. China’s currency regulator has, however, since refuted the report, which has eased sentiment in U.S. markets.
Elsewhere, oil prices were slightly lower, although Brent crude hovered close to the $70 mark, while U.S. crude rose above $64 per barrel.