Traders are working on the floor of the New York Stock Exchange.
NYSE
The US futures index advanced during overnight trading after major averages ended Tuesday’s session in the red.
Dow Jones industrial average futures gained 27 points. The S&P 500 futures rose 0.1%, while the Nasdaq 100 futures rose 0.16%.
Major averages withdrew from record highs to close in negative territory during regular trading. The Dow slipped 97 points, or 0.3%, breaking a two-day winning streak. S&P hit a record high, but retreated during the afternoon trading and eventually closed 0.1% lower for the first negative session of four. The Nasdaq Composite fell 0.05%, also recording a three-day winning streak.
“There are plenty of reasons to be excited about the coming months and we are generally optimistic for this year,” said Lindsey Bell, chief investment strategist at Ally Invest. “The timing of the action is strong, no doubt. But the market may be ready to take a breather as investors digest all the good news, determine how much it is priced and weigh it against uncertain risks, such as inflation,” she added. . .
Strong economic data – including the March jobs report that easily exceeded expectations – have fueled the rise in stocks in recent sessions. All three major averages are coming out of the fourth consecutive quarter of gains as the economic recovery from Covid-19 accelerates.
The International Monetary Fund on Tuesday raised its growth prospects in 2021 for the global economy to 6%, up from the January 5.5% forecast. The organization said that “a way out of this economic and health crisis is increasingly visible.” However, the IMF has warned of “daunting challenges” given the varying pace of vaccine launches around the world.
“In terms of positioning, we still view stocks as attractive on a relative basis,” said Keith Lerner, Truist’s chief market strategist. “Even if we expect periodic setbacks, US stocks have risen 85% over time during economic expansion, and valuations remain attractive relative to fixed income.”
Growing returns have terrified investors recently, causing a growing rotation to value-oriented market areas as well. On Tuesday, the 10-year Treasury yield fell 7 basis points to 1.65%.
The Federal Open Market Committee will publish the minutes of its March meeting on Wednesday, where the central bank chose to leave interest rates unchanged. The minutes could give investors an idea of when the Fed could raise interest rates.