U.S. stock market futures declined during trading overnight on Monday, after Dow and S&P closed record highs amid optimism about economic reopening.
Dow-linked futures contracts fell 53 points. S&P 500 futures fell 0.13%, while Nasdaq 100 futures were slightly negative.
On Monday, during normal trading hours, the Dow jumped 174 points, reaching its highest intraday record of the year and the 14th closing record of 2021. It was also the seventh consecutive positive session of the 30-share average, the longest daily streak of wins since August.
The S&P 500, meanwhile, gained 0.64% for its fifth consecutive positive session. The benchmark index reached the 16th intraday high of the year and the 13th closing record.
The Nasdaq Composite was the highest Monday gaining 1.05% and regaining some of its recent losses.
Shares of high-tech companies and economic reopening works, such as airlines, increased major averages as coronavirus vaccine implementation continues.
“The distribution of COVID-19 vaccines brings us closer to a fully reopened economy and is probably the most important factor in assessing economic growth prospects for 2021,” LPL Financial strategists noted. “We expect interest rates to fade as a threat to markets,” the firm added.
The ten-year Treasury yield was trading at around 1.6% on Monday, after surpassing its peak in more than a year on Friday. The recent jump in bond yields has led to a rotation outside the names of growth, as companies ’future cash flows are starting to look less attractive relative to other assets.
“After a nearly 14-year overcoming cycle, growth dominance relative to its value peaked in the fall of 2020,” said Keith Lerner, Truist’s chief market strategist. “We see even more stocks rising relative to growth over the next twelve months, given the dramatic long-term insufficiency of value, as well as the fact that the U.S. economy is at the peak of the best growth in more than 35 years. “.
On Tuesday Lennar and CrowdStrike are among the companies that will report their revenue. February retail sales data will also be released, as well as sentiment data from builders from the National Association of Home Builders.
Meanwhile, the Federal Reserve will begin its two-day meeting on Tuesday, followed by a statement and briefing by President Jerome Powell on Wednesday.