Stock futures rebounded slightly on Tuesday after concerns about the spread of the Delta variant of Covid-19 caused investors to sell shares at the previous session.

Futures on the Dow Jones Industrial Average rose 216 points, or 0.6%. S&P 500 futures gained 0.5% and Nasdaq 100 futures also gained 0.5%.

Wall Street suffered a sharp sell-off on Monday as investors feared the fast-spreading delta coronavirus variant could hamper economic recovery. The blue-chip Dow fell more than 700 points, or 2.1%, on its worst day since October 28th last year. The S&P 500 was down 1.6% and the Nasdaq Composite was down about 1.1%.

“We remain constructive on equities and see recent growth and slowdown fears premature and exaggerated,” Dubravko Lakos-Bujas, head of US equity strategy at JPMorgan, wrote in a statement on Tuesday. The strategist raised his price target for the S&P 500 from 4,400 to 4,600 at the end of the year, which corresponds to a gain of 8% compared to the closing price on Monday.

Futures were a bit off their nightly session highs as traders watched 10-year government bond yields, which fell to a fresh 5-month low on Monday, adding to concerns about the global economic slowdown. The 10-year yield fell again in early trading Tuesday, falling slightly to 1.17%, putting stock futures under some pressure. The return was above 1.78% in March and its decline amid the recovering economy has puzzled and worried investors.

Still, even after Monday’s decline, the S&P 500 is only 3.1% below its record hit last week. While the stock benchmark fell below its 50-day moving average during Monday’s loss, it eventually closed above this important technical level, giving some hope to traders looking for a Tuesday rebound.

Many of the stocks that were hardest hit on Monday rebounded early on Tuesday. United Airlines shares rose 2% in early trading after losing 5% on Monday. American Airlines and Delta Air Lines also recovered.

Royal Caribbean was up 3.6% in pre-opening trading after falling 4% on Monday. The carnival was also in full swing.

Bank stocks rebounded slightly as investors continued to see bond yields under pressure. JPMorgan was up 0.6% in pre-trading after losing 3% in the previous session.

CNBC’s Jim Cramer said Monday’s sell-off drove out some of the speculators who are taking too much risk in stocks this year and it would end soon.

“Once the speculators are blown out … and stocks that have already fallen sharply start rallying, we can find tradable bottom,” said Cramer. “We’re close, but the speculators aren’t completely crushed yet.”

Bitcoin fell below the $ 30,000 mark overnight, triggering sales on cryptocurrencies and another sign that speculation may be coming out of the markets.

In the USA, new Covid cases are recovering, as the delta variant is spreading mainly among the unvaccinated. According to CDC data, there are an average of about 26,000 daily cases in the US for the past seven days, more than double the average from a month ago.

“Many of the cyclical companies are selling out of fears that Covid will stop the recovery,” said Chris Zaccarelli, CIO at Independent Advisor Alliance. “We do not believe this is the case and are ready to let the sell-off take its course and buy the slump believing that the economy will fully recover and return to its previous growth trajectory, which is what most cyclical companies do in the country brings. ” the airline, travel and leisure industries along with it. “

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IBM shares rose 3% in expanded trading on Monday after the enterprise technology and services provider released second quarter results that exceeded expectations and showed the strongest sales growth in three years.

Netflix shares were about 0.5% higher in the premarket ahead of the second-quarter profit after Tuesday’s bell.