Stock-index futures pointed to further losses for equities on Tuesday, with inflation worries seen keeping pressure on previously highflying tech stocks.
What are major benchmarks doing?
Futures on the Dow Jones Industrial Average
fell 169 points, or 0.5%, to 34,499.
S&P 500 futures
were off 31.65 points, or 0.8%, at 4,151.75.
dropped 172.75 points, or 1.3%, to 13,184.
On Monday, a tech-led selloff sent the Nasdaq Composite
down 2.6% to its lowest close since March 31, while the S&P 500
slumped 1%. The Dow
gave up a gain of more than 300 points that had taken it to an all-time high above 35,000 to end the day down 34.94 points, or 0.1%.
What’s driving the market?
Further pressure on Big Tech shares appeared in store, with shares of Facebook Inc
and Google parent Alphabet Inc.
down more than 1% in premarket activity.
“There isn’t a clear catalyst behind this purge,” said Marios Hadjikyriacos, investment analyst at XM, in a note. “It seems to be a combination of inflation fears making a comeback and some market participants moving higher along the value spectrum, cutting their exposure to anything with a stretched valuation.”
The fact that the selloff has been mostly concentrated in tech and growth stocks, however, is encouraging in terms of the overall market outlook, Hadjikyriacos said, because it indicates investors haven’t lost faith in the economic outlook but are moving away from “more speculative” positions, which could even calm some “bubble concerns, considering what is being sold.”
Investors continue to focus on the labor market after a much smaller-than-expected rise in nonfarm payrolls in March was reported on Friday.
The National Federation of Independent Business said Tuesday its monthly survey found a record 44% of small businesses said job openings went unfilled in April.
Data on U.S. March job openings is due at 10 a.m. Eastern.
Investors will also hear from several Federal Reserve officials on Tuesday, including New York Fed President John Williams, Fed Gov. Lael Brainard, San Francisco President Mary Daly, Atlanta Fed Raphael Bostic, Philadelphia Fed President Patrick Harker, and Minneapolis Fed President Neel Kashkari.
Which companies are in focus?
late Monday said revenue climbed in the latest quarter as the company saw positive results from its COVID-19 vaccine trials in the U.K. and South Africa. Shares were down 11%.
Shares of SmileDirectClub Inc.
were down 2.9% after it disclosed a cybersecurity incident and its financial repercussions.
shares were down 7% after the e-commerce retailer of secondhand luxury goods late Monday delivered a narrower first-quarter loss and sales that were above Wall Street expectations.
Shares of Perigo Co. PLC
were down more than 1% after the Dublin-based provider of consumer self-care products posted weaker-than-expected earnings for its first quarter on Tuesday morning.
Palantir Technologies Inc.
shares were down more than 4% after reporting results Tuesday morning.