US equities futures declined on Tuesday, suggesting that major indices may strike after closing at record highs.
Futures linked to the S&P 500 rose 0.1% lower after the benchmark reached its eighth all-time high of 2021 on Monday. The future for the technology-focused Nasdaq 100 index also declined 0.21% and contracts for the Dow Jones industrial average fell 0.2%.
Investors say the markets are taking a breather after a wide advancement in equities and commodities. The recent rally was fueled by expectations of a new dose of stimulus spending in the US, which could give an impetus to economic recovery. It helped boost expectations for turmoil in U.S. equities, and the CBO volatility index fell to less than 22 this week after the benchmark rose to more than 37 at the end of January.
“Very small downward movements are a symptom of low volatility,” said Trevor Greetham, head of multi-industry at British investment firm Royal London Asset Management. “Low and falling volatility is a phenomenon in the bull market. You get quiet days. ”
Expectations that the economy will revive this year have led money managers to bet that equities will continue to be higher, driven by sectors such as energy, banks and consumer businesses that are sensitive to growth.