Stock Futures Point to S&P 500 Notching New Record
U.S. stock futures edged up Tuesday, suggesting that gains in technology stocks will help send the S&P 500 to an all-time high, as investors awaited housing market data.
Futures tied to the S&P 500 ticked 0.2% higher. A day earlier, the broad market index closed at its second-highest level ever. Dow Jones Industrial Average futures gained 0.1% on Tuesday, while technology-heavy Nasdaq-100 futures rose 0.2%.
Stocks have been grinding higher as investors weigh strong corporate earnings and the economic rebound against the global surge in Covid-19 cases, which is prompting fresh restrictions in some markets. Money managers are also assessing whether the Federal Reserve may slow down plans to pare back its easy-money policies because of signs that economic growth may be slowing.
“Markets are struggling for direction a little bit after we have had a huge run,” said Mike Stritch, chief investment officer at BMO Wealth Management. “People are asking, what is the next catalyst to propel the market higher, or are the handful of risks that are out there enough to collectively give people a little more pause?” he said.
In premarket trading, Palo Alto Networks jumped over 11% after the cybersecurity company reported better-than-expected revenue growth late Monday. CrowdStrike Holdings rose 4% after Nasdaq said it would add the stock to its Nasdaq-100 index on Thursday. Best Buy rose over 4% after saying that sales rose in the second quarter.
