Traders on the floor of the New York Stock Exchange on August 17, 2021.
Andrew Kelly | Reuters
Stock futures remained flat on trading overnight on Tuesday after the Dow Jones Industrial Average fell more than 200 points as investors revalued growth prospects after a good pace in the market this year. .
Futures on the Dow fell just 15 points. The future S&P 500 and Nasdaq 100 changed little.
The S&P 500 fell 0.3% on Tuesday in relatively small operations after Labor Day weekend. The blue Dow bill fell 260 points, weighed down by 3M and Honeywell, while the highly technological Nasdaq Composite rose less than 0.1% to achieve a record close.
Many investors are betting on more volatility in September, one of the most seasonal months of the year. Price changes could come again, especially with the S&P 500 20% more this year without a 5% decline.
“We see a bumpy September-October as the final stages of a mid-cycle transition,” Andrew Sheets, chief asset strategist at Morgan Stanley, said in a note. “The next two months pose an excessive risk to growth, policy and the legislative agenda.”
On Wednesday, the Department of Labor will publish its survey of job openings and closely monitored job turnover. Meanwhile, the Federal Reserve will publish its periodic “beige book” survey of its 12 districts.
One of the catalysts for a sale could be the Federal Reserve and its potential to pull off an unprecedented monetary stimulus to support the economy throughout the pandemic. Fed Chairman Jerome Powell has indicated that the central bank is likely to start withdrawing some of its easy money policies before the end of the year, although it continues to see interest rate hikes at a distance. .
Still, the prospects for takeoff are clouded by the coronavirus variant and the latest job report, which showed great disappointment.
“Shares have seen much stronger-than-average gains, with much smaller-than-average setbacks,” Truist chief market strategist Keith Lerner said in a note. “It would be perfectly normal to see at least one bowel check before the end of the year.”