US stock futures fell on Tuesday, suggesting that major indices could stop after closing at record highs.
S&P 500-linked futures fell 0.1%, after the benchmark released its eighth all-time high in 2021 on Monday. Technology-focused Nasdaq-100 index futures also fell 0% , 21% and contracts for the Dow Jones industrial average fell 0.2%.
Investors said the markets are taking off after a broad advance in stocks and commodities. The recent rally has been fueled by expectations of a new dose of stimulus spending in the US, which could add momentum to the economic recovery. This has helped reduce turbulence expectations for US equities, bringing the Cboe volatility index down to less than 22 this week, after the indicator rose to more than 37 at the end of January.
“Very small reduced movements are a symptom of low volatility,” said Trevor Greetham, head of the multiasset of British investment firm Royal London Asset Management. “The low and low volatility is a phenomenon of the bullish market. You have days of peace. “
Expectations that the economy will rise this year have prompted money managers to bet that stocks will continue to rise, driven by sectors such as energy, banks and growth-sensitive consumer companies.