US futures rose on Tuesday, suggesting the S&P 500 is on track to win a third consecutive record close.
S&P 500 futures rose less than 0.1% a day after the broad index closed at an all-time high. Futures tied to the Dow Jones industrial average and the Nasdaq-100, a heavy technology, rose 0.1% on Tuesday.
Shares have risen since Federal Reserve Chairman Jerome Powell reiterated on Friday that the timing of reducing bond purchases – which will likely begin later this year – will have no influence on subsequent decisions to increase bonds. interest rates. Meanwhile, concerns about the high number of Covid-19 cases provide a boost to technology stocks, as investors renew bets for companies that could benefit from closures and people working from home.
“The fact that the Fed is willing to start shrinking in the face of this Delta variant suggests that they are confident that the economy will stand on its own,” said Peter Langas, chief portfolio strategist at Bessemer Trust.
Powell’s signals that policymakers will only gradually reduce asset purchases and are still a long way from raising interest rates also offers a cushion for the market against any shock factor, he added.