U.S. stock index futures changed little during early morning trading on Tuesday, after The S&P 500 ended in positive territory on Monday, interrupting a five-day series of losses.
Futures contracts related to the Dow Jones Industrial Average rose 32 points. Futures on the S&P 500 and Nasdaq 100 were about the same.
Dow and S&P advanced during regular trading for the first time in six sessions as investors bet that some recent sales seemed excessive. The Dow scored about 260 points, or 0.76%, after rising by almost 1% at one point during the session. S&P advanced 0.23%.
The Nasdaq Composite, however, weakened the trend and slipped 0.07% for its fourth consecutive negative session. The technically large index has the longest daily series of losses since mid-July.
Eight of the 11 sectors ended up on the green, led by energy stocks, which jumped due to rising oil prices.
Stocks linked to the reopening of the economy — including airlines and cruise operators — also rose after a seven-day U.S. daily newspaper Average COVID sufferers dropped to about 144,300, from approximately 167,600 cases a day at the beginning of the month.
“We expect increased stock market volatility in the short term, although long-term investors should take advantage of the pullback to increase stock exposure,” said Richard Saperstein, chief investment officer at Treasury Partners. “The next six weeks tend to be seasonally weak for stocks, which is an additional concern for the stock market, which is already facing higher values and a lack of short-term upward catalysts,” he added.
Carefully monitored inflation data will be released on Tuesday when the consumer price index reading is published in August. Economists expect consumer prices to rise 0.4% month-on-month during August, and 5.4% year-on-year, according to Dow Jones estimates. The press came after producer prices jumped 8.3% year-on-year in August, the highest annual growth since records were first kept in November 2010.
The National Federation of Independent Enterprises will also release its latest survey Tuesday, which will give investors an impression of how small businesses are thriving.
Democrats from the House of Representatives proposed in Washington new tax increases pay a spending package of $ 3.5 trillion. The Summary of Means and Means Committee showed that the plan requires the highest corporate and individual tax rates of 26.5% and 39.6%, respectively.
The highest averages fell at least 1% in September, and RBC does not see the S&P 500 jump by the end of the year. The firm raised its benchmark target to 4,500 on Monday, from a previous target of 4,325. The new target is less than 1% above where the index closed on Monday. The company also introduced a target at the end of 2022 of 4,900.
“We still think the S&P 500 will experience an onslaught of instability / significant withdrawal before the end of the year, a call we have made in recent months due to heightened sentiment in the stock market and positioning,” the company wrote in a note to clients.
“While we take the reasons for the withdrawal seriously, we also see that the risks of an economic recession are low, reducing the likelihood of a complete fear of growth, and we intend to treat this as a buying opportunity,” RBC adds.
The Federal Reserve begins a two-day policy meeting on September 21st.
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