Stock-index futures edged higher Tuesday, indicating a modest bounce for equities a day after a selloff for tech shares pulled major benchmarks back from record levels.
What are major benchmarks doing?
Futures on the Dow Jones Industrial Average
rose 59 points, or 0.2%, o 30,961.
S&P 500 futures
gained 8.25 points, or 0.2%, to 3,800.25.
were up 39.75 points, or 0.3%, at 12,936.75.
Stocks pulled back Monday after ending last week at record levels. The tech-heavy Nasdaq Composite
led the way lower, falling 1.3%, while the Dow
fell 0.3% and the S&P 500
What’s driving the market?
Stocks wobbled Monday as investors paid heed to a rise in Treasury yields and a steepening of the yield curve, as well as concerns that efforts to impeach President Trump for his role in encouraging a violent mob to attack the Capitol last week could hamper efforts to craft another round of stimulus.
But analysts said investors were largely shrugging off political risks around impeachment as well as prospects for further turmoil as President-elect Joe Biden’s inauguration approaches on Jan. 20.
But equities appeared to be underpinned by related optimism over prospects for another large round of aid spending after Biden takes office with Democrats in control of the Senate and House. Biden, who is due to detail his spending plans Thursday, has called for “trillions” in additional spending.
“The fall in stocks yesterday needs to be put in the context of the large gains that were posted last week,” said David Madden, market analyst at CMC Markets, in a note.
“For some time there was chatter that equities were looking lofty so a move to the downside wasn’t exactly a surprise,” he said. “In recent sessions, the speculation that President-elect Joe Biden will map out new stimulus plans has dominated the headlines. Also the vaccine news is assisting the upbeat sentiment.”
Which companies are in focus?
shares were up more than 1% after the retailer said it would work with Ribbit Capital
to create a new fintech startup. Ribbit shares were up more than 10%.
Shares of Becton Dickinson & Co.
rose more than 2% in premarket action after the medical technology company delivered an upbeat outlook for its first quarter.
Boston Scientific Corp.
shares were lower after the medical technology company provided a fourth-quarter sales outlook that was below Wall Street forecasts.