The US stock index futures contract changed little in overnight trading on Tuesday after a session in which stocks fluctuated between gains and losses.
Forward contracts linked to the Dow Jones Industrial Average fell 20 points. S&P 500 futures and Nasdaq 100 futures each fell 0.09%.
The stock changed little on Tuesday as traders consumed higher rates, possible additional stimulus measures and political unrest.
The Dow Jones industrial average rose 60 points, or 0.2 percent, to 31,068.69. The Nasdaq Composite rose 0.3% that day and the S&P 500 rose slightly to 3,801.19. Meanwhile, yields on the 10-year treasury traded briefly at 1.18%, the highest level since March.
Given the increase, Credit Suisse recommended that investors prefer pro-cyclical sectors, including finance and energy. However, rising rates could hurt growth stocks, and a number of technical heavyweights, including Facebook and Apple, declined during Tuesday’s session.
Expectations for additional fiscal stimulus are one of the reasons for the gradual increase in returns. Elected President Joe Biden is expected to announce details of his economic plan on Thursday.
“At a minimum, even a $ 500 billion fiscal package, consisting of additional stimulus controls, comprehensive unemployment benefits and funding for health care and vaccine spending, will be a further boost to economic growth in 2021,” Jason Draho said. , head of UBS Global Wealth Management, head of America said. asset allocation.
After Tuesday’s subdued session, key averages remain lower for the week following Monday’s slide. The Nasdaq Composite is the relative underperformer, down about 1% over the past two sessions. However, small capitals are a bright spot and the Russell 2000 has risen 1.7% so far this week.
The movements come as the unrest in Washington continues. The Democratic House will vote Tuesday night on a resolution calling on Vice President Mike Pence and the cabinet to call for the 25th amendment to oust Trump from the White House.
Covid business is also still on the rise in the US and abroad. The U.S. records at least 248,650 new Covid-19 cases each day and at least 3,223 virus-related deaths, based on a seven-day average calculated by CNBC using Johns Hopkins University data.
Yet many people say that the US will want to grow again later this year.
“By 2021, the U.S. economy should experience strong headwinds through additional fiscal and monetary stimulus, coupled with an end to the impact of the pandemic on the economy,” said Brent Schutte, chief investment officer for Northwestern Mutual Wealth Management. “A skilled demand in industries affected by COVID-19 … and a necessary rebuilding of inventory should further promote job growth,” he added.
Along with him, Schutte said it forms the stage for above-average economic growth, and he sees equities climbing to new highs.
CNBC’s Jacob Pramuk reported.
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