After ending the previous session mostly higher, stocks may move back to the downside in early trading on Tuesday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 122 points.
Concerns about extended coronavirus lockdowns in Europe may generate some negative sentiment amid worries a new wave of infections.
German leaders agreed to extend the country’s lockdown until April 18, raising concerns about demand from Europe’s largest economy.
The news has contributed to a steep drop by the price of crude oil, which may lead to a sell-off by energy stocks on Wall Street.
Nonetheless, a continued drop by treasury yields may limit any early downside on Wall Street, with the yield on the benchmark ten-year note continuing to give back ground after reaching its highest levels in over a year last week.
High-growth technology stocks may benefit from the continued pullback in yields, leading to an extended advance by the tech-heavy Nasdaq.
Traders are also likely to keep an eye on Congressional testimony from Federal Reserve Chair Jerome Powell, who is due to appear virtually before the House Financial Services Committee this afternoon.
In prepared remarks, Powell reiterated the Fed’s recent assessment that indicators of economic activity and employment have turned up recently.
Powell noted that the economic recovery is “far from complete,” however, and stressed the Fed will continue to provide the support that the economy needs for “as long as it takes.”
Not long after the start of trading, the Commerce Department is scheduled to release its report on new home sales in the month of February. New home sales are expected to plunge by 5.2 percent.
Following the mixed performance seen last Friday, stocks moved mostly higher during trading on Monday. The major averages all moved to the upside, with the tech-heavy Nasdaq showing a particularly strong advance.
The major averages gave back some ground going into the close but remained in positive territory. The Dow rose 103.23 points or 0.3 percent to 32,731.20, the Nasdaq jumped 162.30 points or 1.2 percent to 13,377.54 and the S&P 500 climbed 27.49 points or 0.7 percent to 3,940.59.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan’s Nikkei 225 Index slid by 0.6 percent, while China’s Shanghai Composite Index slumped by 0.9 percent.
The major European markets have also moved to the downside. While the French CAC 40 Index has fallen by 0.4 percent, the U.K.’s FTSE 100 Index is down by 0.2 percent and the German DAX Index is down by 0.1 percent.
In commodities trading, crude oil futures are plummeting $2.28 to $59.28 a barrel after inching up $0.13 to $61.55 a barrel on Monday. Meanwhile, after falling $3.60 to $1,738.10 an ounce in the previous session, gold futures are edging up $0.90 to $1,739 an ounce.
On the currency front, the U.S. dollar is trading at 108.58 yen compared to the 108.85 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1892 compared to yesterday’s $1.1933.
Business News
U.S. Stocks May Move Back To The Downside In Early Trading
2021-03-23 12:57:07
