Futures ease after record rally on brightening economic outlook

Futures ease after record rally on brightening economic outlook

U.S. stock index futures fell on Tuesday as investors locked in some gains after the S&P 500 and the Dow closed at record highs on renewed recovery hopes.

FILE PHOTO: A U.S flag is seen on the New York Stock Exchange in the Manhattan borough of New York
FILE PHOTO: A U.S flag is seen on the New York Stock Exchange in the Manhattan borough of New York City, New York, U.S., November 6, 2020. REUTERS/Carlo Allegri/File Photo

REUTERS: U.S. stock index futures fell on Tuesday as investors locked in some gains after the S&P 500 and the Dow closed at record highs on renewed recovery hopes.

The S&P 500 has risen for three straight sessions with volatility index retreating to pre-pandemic lows, driven by scores of fiscal stimulus and swift vaccinations.

Tech and other growth stocks have awakened after lagging in recent weeks behind so-called value stocks expected to outperform as the economy emerges from the coronavirus pandemic.

The tech-heavy Nasdaq is now about 3per cent from its February record high after falling as much as 12per cent from that level.

Progress in President Joe Biden's new infrastructure proposal and the start of the earnings season in the coming weeks could dictate the course of stock markets, analysts said.

Later in the day, investors will turn to a reading of U.S. job openings for February. The data follows blowout employment as well as service sector reports for March.

At 6:26 a.m. ET, Dow E-minis were down 58 points, or 0.17per cent, S&P 500 E-minis were down 10.25 points, or 0.25per cent and Nasdaq 100 E-minis were down 38.75 points, or 0.29per cent.

Snap Inc rose 1.5per cent premarket after Atlantic Equities upgraded its rating on the photo-messaging app owner's shares to "overweight" from "neutral".

(Reporting by Medha Singh in Bengaluru; Editing by Maju Samuel)

Source: Reuters

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