Stock futures rose slightly after a strong start in September

A woman rides the New York Stock Exchange (NYSE) on July 13, 2020 in Wall Street in New York City.

Johannes Isle | Getty Images

US stock futures tumbled slightly on Tuesday evening after a strong September start for the market.

Futures for the Nasdaq 100 rose nearly 0.5%, while the Dow and S&P 500 futures climbed about 0.3%. Major tech stocks such as Apple, Amazon and Microsoft also posted modest gains in extended trading.

Major US indices rose during Tuesday’s regular session, with the Dow Jones Industrial Average and Nasdaq Composite closing at record highs. According to the Bespoke Investment Group, the S&P 500 rose 0.75%, its best first trading day of September since 2010.

Tuesday’s rally came after a banner month for the markets, with both the Dow and the S&P 500 gaining at least 7% to register their best August in more than 30 years. Nasdaq overtook both, achieving 9.59% for the month.

Morgan Stanley’s chief US equity strategist Mike Wilson said on “Closing Bell” that he was still optimistic about the market, but weakness was on the table in the coming weeks after such a strong rally.

“I’m very creative in the next 12 months,” Mike Wilson said. Wilson said, “I think we are a little over-cooked … trying to make these types of reforms on time is impossible.” “It wouldn’t surprise me if we got a 10% improvement, but it wouldn’t be a surprise if we didn’t either. We’re in a bull market.”

In Washington, congressional leaders appear isolated in negotiations for another relief package, but the Trump administration announced on Tuesday evening that the Centers for Disease Control and Prevention would invite its authority to evict by the end of the year.

The move into futures also followed conflicting news in the fight against coronovirus, with Swiss pharmaceutical firm Roche announcing that it would begin a new rapid antigen test in Europe by the end of the month. The company said it would apply to an emergency use authority from the US Food and Drug Administration.

However, an expert panel convened by the US National Institutes of Health stated that a plasma treatment postponed by President Trump and FDA chief Stephen Hahn does not appear to be effective against Kovid-19 based on existing research.

New figures on auto sales pointed to a sustained economic recovery, with AutoData stating that August sales were up only at 15 million. This reading was down 11% year-on-year, but was the highest rate since February.

Investors will be looking at ADP payroll data on Wednesday morning, the last read on the labor market before the official August jobs report is released on Friday.