Following the rally seen to close out the previous week, stocks may see further upside in early trading on Monday. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.2 percent.
The markets may benefit from an extended rebound by regional banks, as shares of PacWest Bancorp (PACW) are soaring by 35.3 percent in pre-market trading.
PacWest is poised to add to the 81.7 percent spike seen last Friday after the bank slashed its quarterly dividend to just $0.01 per share but said its "business remains fundamentally sound."
Overall trading activity may be somewhat subdued, however, as traders look ahead to the release of key inflation data later in the week.
The reports on consumer and producer price inflation, which are due to be released on Wednesday and Thursday, respectively, could have a significant impact on the outlook for interest rates.
Stocks moved sharply lower higher during trading on Friday, regaining ground after trending lower over the past several sessions. The major averages all showed significant moves back to the upside, with the Dow bouncing off its lowest closing level in over a month.
The major averages pulled back off their best levels going into the close but still posted strong gains. The Dow jumped 546.64 points or 1.7 percent to 33,674.38, the Nasdaq spiked 269.01 points or 2.3 percent to 12,235.41 and the S&P 500 surged 75.03 points or 1.9 percent to 4,136.25.
Following the rebound on the day, the major averages turned in a mixed performance for the week. While the tech-heavy Nasdaq crept up by 0.1 percent, the S&P 500 slid by 0.8 percent and the Dow slumped by 1.2 percent.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Monday, although Japan's Nikkei 225 Index bucked the uptrend and slid by 0.7 percent. China's Shanghai Composite Index surged by 1.8 percent, while Hong Kong's Hang Seng Index jumped by 1.2 percent.
The major European markets have also moved to the upside on the day. While the U.K.'s FTSE 100 Index has shot up by 1.0 percent, the French CAC 40 Index and German DAX Index are up by 0.3 percent and 0.2 percent, respectively.
In commodities trading, crude oil futures are jumping $1.91 to $73.25 a barrel after surging $2.78 to $71.34 a barrel last Friday. Meanwhile, after tumbling $30.90 to $2,204.80 an ounce in the previous session, gold futures are rising $6.40 to $2,031.20 an ounce.
On the currency front, the U.S. dollar is trading at 135.10 yen versus the 134.80 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.1037 compared to last Friday's $1.1019.
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