Stock Futures Declined on Monday Following S&P 500’s Record
It is worth noting that, stock futures fell in early morning trading on Monday, after a rush of broad-based late buying pushed the S&P 500 to a record high in the final minutes of the previous session. Interestingly, the Dow Jones Industrial Average declined 188 points. This is not the end of the story as S&P 500 futures as well as Nasdaq 100 futures also both traded in negative territory.
As a reminder, last week more precisely on Friday, all the three major benchmarks rallied to their session highs into the close. Interestingly, the blue-chip Dow closed about 450 points higher on March 26. Moreover, the S&P 500 eventually climbed 1.7% to hit a record closing high. It is worth mentioning that, the Nasdaq Composite wiped out a 0.8% loss and ended Friday 1.2% higher.
People should keep in mind that, traders are bracing for heightened volatility during this holiday-shortened work, with quarter-end rebalancing among pension funds and other big investors. Moreover, the recent swift advance in bond yields could set up money managers for big adjustments in their portfolio.
Stock futures and Joe Biden
Evident from the information stated above, stock futures suffered losses in early morning trading on Monday. Interestingly, the Dow, as well as the S&P 500, added 6.9% and 4.3% respectively, so far in March. Nevertheless, the tech-heavy Nasdaq fell 0.4% this month as some investors jumped high-flying technology names amid rising yields.
Furthermore, investors are awaiting updates from President Joe Biden about his infrastructure plan. Importantly, this plan could cost north of $3 trillion. The country’s president is likely to unveil his plan when Biden travels to Pittsburgh on Wednesday.
According to the White House secretary Jen Psaki, Biden plans to roll out two packages in the coming weeks. The first package will cover infrastructure and the second package will address health and family care.
As a reminder, the stock market is closed for the Good Friday holiday. However, the March jobs report is still slated for release on March 29. Interestingly, economists expect that the economy added 630,000 jobs in March. Moreover, they expect the unemployment rate to fall to 6% from 6.2%.
People should keep in mind that, stock futures declined on Monday morning. Importantly, the Dow, as well as the S&P 500, gained 6.9% and 4.3% respectively, so far this month.
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