US Stocks Set To Extend Gains Despite Mixed Earnings, VIX Dips Back Toward Pre-Sell-Off Levels: Analyst Says Pullback Is A 'Growth Scare' And Not 'Calamity'

Wall Street could go from strength to strength as the index futures point to another session in the green as investors seek to put the worst behind. Volatility continued to drop, as evidenced by another sharp slide in the CBOE Volatility Index, which is now approaching pre-sell-off levels. Earnings news of the day has been mixed, with the Dow Jones Industrials likely to take a hit from negative reactions to earnings reports from Walt Disney Company DIS and Amgen, Inc. AMGN.

Super Micro Computer, Inc. SMCI may weigh down on AI-levered stocks as traders sold the AI server maker due to margin contraction. That said, the broader sentiment appears to be positive as traders pile into beaten-down stocks to position themselves for a strong rebound they factor in for later this year.

Cues From Last Session:

Stocks rebounded from multi-week lows and launched into a rally as traders scrambled to pick bargains across sectors. The market slowly got over the trauma inflicted by weakening domestic economic fundamentals and the selling set in motion by the unwinding of the yen carry trades.

The major averages opened mostly lower and saw some indecision in early trading. They took off, benefiting from across-the-board buying, and hovered in positive territory all through the remainder of the session. The gains were led by real-estate stocks.

Small-caps outperformed their bigger peers, with the Russell 2,000 Index ending 1.23% higher for the day.

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