Australia

Australian shares are set to open higher, after U.S. markets rose powered by the technology sector.

ASX futures were up 0.69% or 55 points as of 8:00am on Tuesday, suggesting a higher open.

A big rebound in technology shares helped lift major US stock indexes, restoring some calm to markets after a rough end to the previous week.

The S&P 500 rose 1.1% to snap a three-day losing streak. The tech-heavy Nasdaq Composite gained 1.6% after dropping 4.2% over the previous three trading sessions. The Dow Jones Industrial Average added 0.3%, or roughly 128 points.

In commodity markets, Brent crude oil was down 0.3% to US$82.26 a barrel, while gold was flat at US$2,397.43.

The Australian dollar was at 66.42 US cents, up from its previous close of 66.39.

Asia

Chinese shares ended lower with the Shanghai Composite Index falling 0.6% to 2,964.22, the Shenzhen Composite Index declining 0.1% to 1608.49, and the ChiNext Price Index down 0.1%. Investors were digesting PBOC's earlier-than-anticipated LPR cut this morning and awaiting more policy signals from the key political meeting due end-July. Energy stocks led the declines. Cnooc fell 3.0% and PetroChina dropped 3.4%. Gainers included BYD, which added 0.6%, and Foxconn Industrial Internet, which gained 1.0%.

Hong Kong's Hang Seng Index closed 1.25% higher at 17,635.88, reversing opening losses, led by consumer stocks. Markets are digesting the PBOC's unexpected decision to lower the 7-day reverse repo rate to 1.70% from 1.80%. The surprise rate cut, which the PBOC says is aimed at increasing support for the Chinese economy, likely reflects authorities' worries about slowing growth, the UOB Global Economics & Markets Research team wrote in a note. Trip.com rose 5.1%, Lenovo Group gained 3.9% and Meituan was 3.2% higher. Among decliners, New World Development lost 1.3%, China Merchants Bank fell 1.0% and Hang Lung Properties shed 0.7%. The Hang Seng Tech Index rose 2.1%.

Japanese stocks ended lower, dragged by falls in electronics and heavy industry stocks, as uncertainty continues about the Bank of Japan's policy outlook. Hitachi Ltd. dropped 4.7% and Advantest shedded 3.5%. The Nikkei Stock Average fell 1.2% to 39,599.00. The 10-year Japanese government bond yield rose 1 bp to 1.050%, with longer-term yields rising more sharply. Investors are focusing on economic data as well as developments over U.S. Democratic presidential nomination.

Indian shares edged lower, dragged by financial stocks. The benchmark Sensex fell 0.1% to 80,502.08. Investors are closely watching corporate earnings results. Kotak Mahindra Bank led losses, down 3.55% after 1Q operating profit dropped compared with a quarter earlier. State Bank of India fell 1.2%. Bajaj Finance and Bajaj Finserv shed 0.7% and 0.6%, respectively. Meanwhile, NTPC led gains, up 2.5%, while Tata Steel rose 1.9%.

Europe

Stocks in the U.K. rose Monday, as the FTSE 100 Index gained 0.5% to 8198.78.

Among large companies, Oxford Nanopore Technologies PLC was the biggest gainer during the session, surging 12%, and Ocado Group PLC surged 12%. Rentokil Initial PLC rounded out the top three movers on Monday, as shares surged 7.8%.

EasyJet PLC posted the largest decline, dropping 7.1%, followed by shares of Jet2 PLC, which dropped 5.5%. Shares of Craneware PLC fell 4.0%.

In other parts of Europe markets closed higher, with the STOXX Europe 600 Index up 0.9% to 514.79, Germany's DAX rose 1.3% to 18,407.07 and France's CAC 40 gained 1.2% to 7,622.02.

North America

A big rebound in technology shares helped lift major stock indexes, restoring some calm to markets after a rough end to the previous week.

Powered in large part by Nvidia and other chip makers, the S&P 500 rose 1.1% to snap a three-day losing streak. The tech-heavy Nasdaq Composite gained 1.6% after dropping 4.2% over the previous three trading sessions. The Dow Jones Industrial Average added 0.3%, or roughly 128 points.

Monday's gains followed President Biden's announcement on Sunday that he was ending his presidential run, a move that injected fresh uncertainty into an election that could have wide ranging implications for markets and the economy.

However, there was little consensus among investors and analysts about what Biden's announcement should mean for markets in the short run, and Monday's moves appeared to be influenced by other factors.

Among those: the recent declines in stocks that started out largely concentrated in the tech sector but that broadened out by the end of last week.

Data released July 11 showing a slowdown in inflation sparked a huge rotation out of large technology shares and into the stocks of small and midsize companies. Those had previously lagged behind larger stocks and are seen as bigger beneficiaries if the Federal Reserve cuts interest rates in the coming months.

But they, too, had fallen in recent days, setting the stage for Monday's rebound, which spanned the shares of both big and small companies.

Among individual movers, Nvidia gained 4.8% after Reuters reported the chip maker is working on a version of its AI chips that would be compatible with U.S. controls on exports to China. Verizon fell 6.1% after the wireless carrier reported weaker-than-expected quarterly revenue.

Evidence of the muted impact of the presidential campaign could be seen in the bond market.

In previous weeks, yields on longer-term U.S. Treasurys climbed when it looked more likely that Republicans could win control of both Congress and the White House -- increasing the chances that they could pass tax cuts that might expand the budget deficit and add to inflation pressures.

On Monday, longer-term Treasury yields initially edged lower -- possibly reflecting worse odds of a Republican sweep -- but they reversed that move before lunchtime.

By the end of the session, the yield on the benchmark 10-year U.S. Treasury note settled at 4.259%, up from 4.238% Friday.

Some investors believe recent market moves have less to do with politics, the Fed or even inflation and more to do with what they see as sky-high stock valuations.

"The thing that really worries us is the level of valuations," said Roger Aliaga-Diaz, global head of portfolio construction and chief Americas economist at Vanguard.

Such conditions, he added, leave stocks ripe for a correction even if it is hard to know when that could happen.

Some investors said coming earnings results for large technology companies could go far toward determining whether stocks can extend their momentum from Monday.

Both Google parent Alphabet and Tesla will report their latest results after the market closes Tuesday.