US equity futures fell on Tuesday, indicating that the major indices may take a breather after signs of a rapid economic recovery took them to record highs.
Futures pegged to the S&P 500 were down 0.1%, a day after the benchmark for large-cap stocks rose to an all-time closing high of 17 in 2021. Contracts for the Dow Jones Industrial Average, which the Monday hit a new high for the eighteenth time this year, also fell 0.1%. Futures on the Nasdaq-100 heavy-tech index were relatively flat.
Stocks have soared at the start of the second quarter amid optimism that government spending, vaccines and loosening restrictions are unleashing a spell of rapid economic growth. A series of data has offered evidence that a rebound in activity and hiring is taking place a year after the pandemic slammed the economy to a halt. Investors are betting that sectors like banking and mining will benefit from the reopening. Tech stocks have also risen after wobbling at times during the first quarter.
“It seems that the USA. [economy] he just stepped on the gas, “said Brian O’Reilly, Head of Market Strategy at Mediolanum International Funds. The recent rebound shows signs of being broad and is not just concentrated in the economically sensitive sectors that suffered the most from the pandemic in 2020, he added. “We have certainly seen a moderation in the one-way bet that was being made until maybe mid-March.”
The Cboe volatility index, which measures expected swings in the S&P 500 based on option prices, rose to 18.04. That is close to its lowest level since before the pandemic began to shake markets in late February 2020.