Stock futures rise in overnight trading after Tuesday’s losses
US stock futures rose overnight Tuesday after stocks fell in the regular session.
Dow futures rose 85 points. S&P 500 futures gained 0.25% and Nasdaq 100 futures rose 0.35%.
On Tuesday, the major averages shed some of their strong Monday gains. The Dow Jones Industrial Average lost 143 points, which was put under pressure by Intel’s 2.6% decline. The S&P 500 posted a loss of around 0.8%.
The Nasdaq Composite was the relative underperformer, falling about 1.7% as Facebook, Microsoft, Amazon, Apple, Netflix and the Google parent alphabet closed lower.
The Russell 2000 small-cap benchmark fell 1.93%.
“On a day with little big news and before big news – Fed meetings and employment numbers – investors took the opportunity to take advantage of yesterday’s big rebound,” said Jim Paulsen, chief investment strategist at Leuthold Group CNBC. “Tuesday’s worst performer, technology, was yesterday’s biggest winner”.
The 10-year government bond yield, which was recently closely watched by investors, fell to 1.40% on Tuesday. The yield rose to a high of 1.6% last week, causing investor concerns about higher borrowing costs and inflation.
“Overall, buying on the go is alive and well,” added Paulsen. “Despite some turbulent days, the S&P 500 is up 1.55% this week, dominated by the reopening of games such as materials, industry, finance and energy, with technology providing a market performance.”
President Joe Biden said late Tuesday that the U.S. will have sufficient supplies of coronavirus vaccines to vaccinate every adult in the nation by the end of May. That would be two months earlier than planned. The introduction of vaccines is seen as a key element in getting Americans back to work and recovering the economy.
February private salary data is due at 8:15 a.m. on Wednesday. This gives investors a glimpse into the job market. Economists polled by Dow Jones estimate that 225,000 private jobs were created in February, more than 174,000 in January.
Brown-Forman, Dollar Tree and Wendy report their quarterly results on Wednesday before the bell.
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