Summary List Placement
US futures slipped after the Dow Jones and S&P 500 hit record highs on Monday.
European stocks climbed after reopening from a 4-day holiday.
Stock markets are optimistic about the economic recovery from the coronavirus pandemic.
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US stock futures slipped slightly on Tuesday morning after the Dow Jones and S&P 500 surged to record highs on Monday in the wake of strong economic data, while oil prices recovered from a recent slide.
S&P 500 futures were down 0.36% on Tuesday, while Dow Jones futures were off by 0.17%. Nasdaq 100 futures slipped 0.29% after the index jumped on Monday.
European stock markets played catch-up after a 4-day weekend, with the Stoxx 600 index climbing 0.87% in early trading, despite Credit Suisse taking an estimated $4.6 billion hit over the implosion of the Archegos investment fund. The UK’s FTSE 100 rose 1.27%.
Stocks were mixed in Asia overnight, with Australia and South Korea’s main indices ticking higher but Japan’s Nikkei 225 falling 1.3% and China’s CSI 300 down 0.41%.
Traders in the US looked set for a calmer day after stocks surged on Monday as investors got their first chance to react to stronger-than-expected jobs data posted on Friday.
US nonfarm payrolls employment rose by 916,000 in March, data showed, well above economists’ expectations.
“The recovery trade is at full throttle, with the major US indices hitting new record highs,” said Richard Hunter, head of markets at Interactive Investor in the UK.
“Alongside the impending effects of the major stimulus packages on spending and infrastructure, the strength of these economic data also raises hopes that any number of solid readings will now become the order of the day as the nascent US economic recovery moves into full growth mode.”
Some investors are worried that President Joe Biden’s $1.9 trillion stimulus package, the Fed’s loose monetary policy, and the rapid reopening of the economy could spur a sharp rise in inflation.
Stronger inflation expectations have sent the yield on the key 10-year US Treasury note sharply higher.
But the yield, which moves inversely to the price, fell 1.4 basis points to 1.706% on Tuesday morning.
Oil prices rose after falling sharply on Monday over fears of rising supplies from the Opec group of producers and higher Iranian output.
Brent crude rose 1.5% on Tuesday morning to $63.07 a …read more
Source:: Business Insider