The futures stock of the US equities changed little during overnight trading on Monday after the Dow and S&P closed at a record high amid optimism about the economic reopening.
Forward contracts linked to the Dow slipped 45 points. S&P 500 futures fell 0.1%, while Nasdaq 100 futures rose 0.03%.
During normal trading hours, the Dow jumped 174 points to its 21st record of the day of the year, and the 14th record of 2021. It was also the seventh straight positive session of the 30 stocks – the longest daily winning streak since August. .
The S&P 500 meanwhile gained 0.64% for its fifth live positive session. The benchmark index reached its 16th intraday high of the year and closes the 13th record.
The Nasdaq Composite performed relatively better on Monday, recovering 1.05% and some of its recent losses.
Shares of Big Tech companies and economic reopening, such as airlines, led the major averages higher as the effects of the coronavirus vaccine continued.
“The distribution of COVID-19 vaccines brings us closer to a fully reopened economy and is likely to be the most important factor in assessing economic growth prospects for 2021,” LPL Financial strategies noted. “We expect interest rates to fade as a threat to markets,” the firm added.
The ten-year treasury yield traded around 1.6% on Monday, after reaching its highest level in more than a year on Friday. The recent rise in bond yields has led to the eradication of growth names, as companies’ future cash flows are starting to look less attractive compared to other assets.
“After an approximately 14-year better performance cycle, growth’s dominance in value peaked in the fall of 2020,” said Keith Lerner, Truist’s chief market strategist. “We are seeing more upward value relative to growth over the next 12 months, given the dramatic long-term underperformance, as well as the U.S. economy on the verge of delivering the best growth in more than 35 years.”
On Tuesday, Lennar and CrowdStrike are one of the companies that will report their earnings. Data on February retail sales will also be released, in addition to builders’ sentiment data from the National Association of Home Builders.
Meanwhile, the Federal Reserve begins its two-day meeting on Tuesday, followed by a statement and briefing by Chairman Jerome Powell on Wednesday.