US stock futures held steady during overnight trading on Tuesday amid renewed investor concerns about the global recovery from the coronavirus pandemic.
Dow futures were up 10 points. S&P 500 futures were up 0.04% and Nasdaq 100 futures were up 0.15%.
On Tuesday, stocks linked to an economic recovery led the losses amid mounting new cases of coronavirus in the US and beyond.
The Dow Jones Industrial Average lost more than 300 points, with Caterpillar’s stock down 3.4%. The S&P 500 was down 0.76% with heavy losses from airlines and cruise lines. The Nasdaq Composite was down 1.12% as Facebook, Apple and Tesla all closed lower.
Small-cap benchmark Russell 2000 fell 3.58%, its worst day since June.
Many regions of the world are seeing increasing Covid-19 cases as highly contagious variants continue to spread, the World Health Organization said. Germany and France are extending or enforcing new lockdown measures.
Concerns about the recovery are hitting the bottom of the market on the one-year anniversary. Stocks rebounded from the bottom of the market, with the S&P 500 up about 80% since its low a year ago, marking the best start to a new bull market ever.
On Wednesday, Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen will continue their testimonies before the US House Committee on Financial Services. In its first joint performance on Tuesday, the pair acknowledged richly valued asset prices in the markets, but said they are not concerned about financial stability.
“I would say that while asset valuations are boosted by historical statistics, there is also a belief that with vaccinations moving at a rapid pace, the economy will be able to get back on track,” Yellen said during the testimony. “I think in an environment where asset prices are high, it’s important for regulators to make sure the financial sector is resilient and the markets work well.”
Powell said the economic recovery from the pandemic “has progressed faster than generally expected and appears to be getting stronger.”
However, he said the sectors of the economy hardest hit by the pandemic “remain weak” and that the unemployment rate “underestimates the deficit,” so the recovery still has a long way to go.
Treasury yields fell on Tuesday, with 10-year Treasury yields hovering around 1.62%.
General Mills, Tencent, KB Homes and RH are among the companies reporting their earnings on Wednesday.