The stock futures fell to record highs one day after the Dow and S&P 500 closed
A woman takes a selfie with the ‘Charging Bull’ statue in New York City on February 17, 2021.
ANGELA WEISS | AFP | Getty Images
Stock futures fell early Tuesday morning trading after the Dow Jones Industrial Average and S&P 500 both closed at record highs as strong economic data raised hopes for a smooth rebound.
Futures on the Dow Jones Industrial Average dipped 76 points. S&P 500 futures and Nasdaq 100 futures also traded in slightly negative territory.
Wall Street rebounded at a record level on Monday after a report on blowout jobs and a surge in service industry activity showed that the economic recovery had gained momentum amid the accelerated adoption of vaccines.
“The vaccinations are being rolled out at a record high, and the historic economic stimulus efforts by Congress have paved the way for continued positive market momentum,” said Chris Larkin, chief executive officer, trading and investing products, E-Trade Financial.
Bond yields were again calm, with the 10-year government bond yield remaining steady at 1.71%, allaying fears of rising inflation.
Cleveland Federal Reserve president Loretta Mester told CNBC Monday that she was largely unaffected by this year’s surge in government bond yields.
“I think the higher bond yields are understandable in the context of the improving economic outlook. The increase was an orderly increase,” Mester said. “So I’m not concerned about the rise in yields at this point. I don’t think the Fed can act on anything.”
Investors continue to evaluate President Joe Biden’s $ 2 trillion infrastructure proposal and its chance of becoming a reality. While politicians on both sides of the aisle support funding to rebuild American roads and bridges, disagreements remain over other priorities and the final size of the bill. There is also debate over Biden’s plan to partially raise corporate tax to 28% to fund the plan.
Biden said Monday he was not concerned that a corporate tax hike would harm the economy. West Virginia Conservative Democratic Senator Joe Manchin reportedly said he was opposed to the proposed 28% tax increase.