Traders at the New York Stock Exchange (NYSE), today, Wednesday, April 21, 2021.
US equity futures were flat in Tuesday night trading after a session defined by major weakness in tech stocks.
Dow futures contracts rose only 12 points. S&P 500 futures gained 0.05% and Nasdaq 100 futures fell 0.05%.
At Tuesday, investors left technology and growth stocks, pushing the Nasdaq Composite down 1.9%. Actions of Netflix lost 1.2%, and Microsoft fell 1.6%. Amazon and Facebook lost 2.2% and 1.3% respectively. Apple fell 3.5% and Alphabet fell 1.6%.
The S&P 500 erased Monday’s gains, losing 0.7%. The Dow Jones Industrial Average ended the day up about 20 points after dropping more than 300 points at one point on Tuesday.
The benchmark Russell 2000 small cap index fell 1.3%. The reopening of games like airlines, casinos and cruise lines has also resulted in selling pressure.
There are a number of possible reasons for the downward pressure, including fears of rising inflation, concerns the Federal Reserve might have about reducing monetary stimulus sooner than wired, and the potential tax increases in the coming months.
US stocks hit daily low after Treasury Secretary Janet Yellen said comments that interest rates may need to increase somewhat to prevent the economy from overheating.
The income season continues on Wednesday with reports of General Motors, Hilton around the world, Allstate and Etsy. While earnings were strong in the first quarter and companies raised their forecasts, stocks don’t always move higher after good news. Investors told CNBC that could mean the positive outlook is already embedded in stocks.
Private payroll data will also be released on Wednesday at 8:15 a.m.ET. Economists polled by Dow Jones expect 800,000 private jobs to be added in April, up from 517,000 in March, according to ADP. These figures precede Friday’s closely watched employment report.
Two key readings on the service sector will also be released on Wednesday morning.
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