After moving notably higher over the past several sessions, stocks may show a lack of direction in early trading on Tuesday. The major index futures are currently pointing to a roughly flat open for the markets, with the S&P 500 futures down by less than a tenth of a percent.
Traders may take a breather to assess the recent rally on Wall Street, which has lifted the major averages to new record highs following former President Donald Trump’s decisive victory in last week’s presidential election.
Trump’s return to the White House is expected to be positive for corporations and the U.S. economy, although there are some concerns about the effect planned tariff increases will have on inflation.
A lack of major U.S. economic data may also keep some traders on the sidelines ahead of the release of closely watched reports in the coming days.
A highly anticipated report on consumer price inflation is due to be released on Wednesday, while reports on producer price inflation, retail sales and industrial production are likely to attract attention later in the week.
U.S. stocks closed on a firm note on Monday, lifting the major averages to new record highs, even as the Nasdaq settled flat as technology stocks turned in a subdued performance.
The Dow, which climbed to 44,486.70, subsequently gave up some gains but stayed firm throughout the session to settle at 44,293.13, up 304.14 points or 0.7 percent from previous close. The S&P 500 closed up 5.81 points or 0.1 percent at 6,001.35, after having advanced to a new high at 6,017.31.
The Nasdaq, which spent much of the day’s session in negative territory, eked out a small gain of 11.99 points or 0.1 percent, settling at 19,298.76.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan’s Nikkei 225 Index fell by 0.4 percent, while China’s Shanghai Composite Index slumped by 1.4 percent and Hong Kong’s Hang Seng Index dove by 2.8 percent.
The major European markets have also moved to the downside on the day. While the French CAC 40 Index is down by 1.5 percent, the German DAX Index is down by 1.2 percent and the U.K.’s FTSE 100 Index is down by 1.0 percent.
In commodities trading, crude oil futures are climbing $0.56 to $68.60 a barrel after plunging $2.34 to $68.04 a barrel on Monday. Meanwhile, after plummeting $77.10 to $2,617.70 an ounce in the previous session, gold futures are inching up $0.90 to $2,618.60 an ounce.
On the currency front, the U.S. dollar is trading at 154.33 yen compared to the 153.72 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0619 compared to yesterday’s $1.0655.
Business News
U.S. Stocks May Lack Direction Following Recent Rally
2024-11-12 13:53:00
