Stock futures slid into morning trading on Tuesday after a good start to May as investors piled into stocks that would have benefited most from an economic reopening.
Futures on the Dow Jones Industrial Average lost 16 points. S&P 500 futures lost 0.2%, while Nasdaq-100 futures lost 0.3%.
The futures movement followed solid gains for the Dow during normal trading hours. The 30-stock benchmark rallied over 200 points, while the S&P 500 was up 0.3%. Retail stocks led the market’s progress with Gap and Macy’s rallying more than 7%. Dillard was up nearly 10%, while Urban Outfitters and Kohl both earned more than 5%.
“Buying activity has increased within the industrial sectors, Boeing and Delta saw heavy trading activity as investors could benefit from price cuts and rely on reopenings,” said Chris Larkin, chief executive. of the trading and investment product at E-Trade Financial.
States continued to loosen pandemic restrictions during the vaccine launch. New York Gov. Andrew Cuomo announced that most capacity restrictions will be lifted in New York, New Jersey and Connecticut, while 24-hour subway service will resume in New York City later this month.
Florida Gov. Ron DeSantis signed an executive order on Monday that immediately suspends the state’s remaining health restrictions.
The Dow and the S&P 500 have just recorded their consecutive months of earnings, taking their earnings in 2021 to over 11% each.
“Many of the factors driving markets remain in place, including vaccine optimism, economic reopening and accelerating earnings, although inflation and valuation concerns remain,” said Mark Hackett, head of research. on Nationwide’s investments.
Warren Buffett said Saturday he is seeing “very substantial inflation” among Berkshire Hathaway’s corporate picking during the economic recovery.
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