On Tuesday, U.S. stock futures signaled towards a lower open for Wall Street, after two sessions of gains that helped investors somewhat forget about the possibility of a deeper market correction taking place.
By 6:53 a.m. EST: Dow e-minis were down 183 points, S&P 500 e-minis were down 17.25 points and the Nasdaq 100 e-minis were down 46.75 points.
Over the last two trading sessions, the major indexes gained about 3 percent. This was their best two-day period since 2016, following their worst performance in two years last week. The declines eliminated the gains generated so far this year for the benchmark S&P 500 now down 0.5 percent and the blue-chip Dow Jones Industrial Average down 0.7 percent. However, the Nasdaq was still holding onto this year’s gains of 1.4 percent at the close of yesterday’s session.
U.S President Donald Trump’s budget proposal helped stocks gain on Monday, as the budget included an infrastructure spending plan boosting material and industrial sectors.
Wednesday’s inflation numbers will be a key influence on the trading sentiment for the rest of the week. The downfall in stocks was brought on by rising bond yields and concerns regarding price growth, as U.S. interest rates are making their way back to levels seen before the financial crisis. U.S. 10-year Treasury yields remained near 2.8312 percent, easing slightly back from Monday’s four-year high of 2.9020 percent.
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On Tuesday Cleveland’s Fed President Loretta Mester is scheduled to speak on the economic outlook and monetary policy. Mester is a voting member in the U.S. central bank’s rate-setting committee for 2018.
Over three-fifths of the S&P 500 companies have reported their earnings, with just about 78 percent beating profit expectations, according to data. This is higher than the average 72 percent rate that beat expectations for the past four quarters.
In premarket trading, Under Armour was up over 10 percent after the sportswear company reported quarterly revenue that surpassed the estimates of analysts.
Following the Wall Street Journal’s report of Walgreens approaching AmerisourceBergen for a takeover, the drug distributors stock rose around 13 percent, while Walgreens shed 1.8 percent.