US futures were fixed in overnight trading on Tuesday amid renewed investor concerns about the global recovery from the coronavirus pandemic.
Dow futures rose 10 points. The S&P 500 futures gained 0.04% and the Nasdaq 100 futures rose 0.15%.
On Tuesday, stocks linked to an economic recovery led to losses amid rising new coronavirus cases in the US and abroad.
The Dow Jones industrial average lost more than 300 points, driven by a 3.4% drop in Caterpillar stock. The S&P 500 was down 0.76%, with major losses from airlines and cruise lines. Nasdaq Composite fell 1.12% as Facebook, Apple and Tesla closed lower.
The Russell 2000 small capital benchmark fell 3.58% for the worst day in June.
Many regions of the world are seeing cases of Covid-19 growing as highly contagious variants continue to spread, the World Health Organization said. Germany and France extend or implement new blocking measures.
Recovery concerns come on the one-year anniversary of the lower market. Shares have returned from the bottom of the market, with the S&P 500 hitting about 80% since a drop a year ago, marking the best start for a new bull market.
On Wednesday, Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen will continue their testimony before the US Financial Services Committee. In the first joint appearance on Tuesday, the pair acknowledged the prices of assets highly valued in the markets, but said they were not concerned about financial stability.
“I would say that while asset valuations are elevated by historical metrics, there is also the belief that if vaccinations are carried out at a rapid pace, that the economy will be able to get back on track,” Yellen said during the testimony. . “I think in an environment where asset prices are high, the important thing is for regulators to make sure that the financial sector is resilient and to make sure that markets work well.”
Powell said the economic recovery from the pandemic “progressed faster than generally expected and appears to be consolidating.”
However, he said that the sectors of the economy most affected by the pandemic “remain weak” and the unemployment rate “underestimates the deficit”, so that the recovery still has a long way to go.
Treasury yields fell on Tuesday, and 10-year treasury yields hovered around 1.62%.
General Mills, Tencent, KB Homes and RH are among the companies that reported earnings on Wednesday.