US stock futures held steady overnight trading on Tuesday after the S&P 500 suffered a three-day loss.
Dow futures were up 46 points. S&P 500 futures and Nasdaq 100 futures gained 0.12% and 0.1%, respectively.
On Tuesday, the Dow Jones Industrial Average lost 200 points, despite a 2.9% rise in Apple shares. The S&P 500 fell 0.2% for the third day of losses. Travel-related stocks have come under pressure due to ongoing concerns over the new UK coronavirus strain
Shares fell despite the fact that after months of denial, Congress passed a bill containing $ 900 billion in pandemic aid. Certainly, investors could turn a profit after robust stock returns in 2020 as the end of the year approaches.
The package includes additional unemployment benefits, more small business loans, $ 600 direct payments, and funds to distribute Covid-19 vaccines. President Donald Trump is expected to sign the bill in the coming days.
The stock market action further reinforces the old adage ‘buy on the rumor (from another stimulus package) and sell on the news,’ Jim Paulsen, chief investment strategist at the Leuthold Group, told CNBC. the another $ 900 billion in tax relief. Despite increased fiscal aid, leadership in the S&P 500 returned to technology and away from cyclicality. ”
The Nasdaq Composite outperformed on Tuesday, closing 0.5% on a new record, while Amazon, Apple and Microsoft all closed higher. Stationary bicycle company Peloton fell by 11%.
The small-cap benchmark Russell 2000 rose 0.99% and ended on a record. Small caps are up 105.94%, more than doubling from their March lows.
“The big winners, however, have been small-cap stocks that seem to be rising lately with or without the prospect of additional stimulus,” added Paulsen. “Cyclical stocks, and especially international stocks, were crushed today by a significant US dollar rebound, reversing some of its recent weakness.”
Despite the recently adopted fiscal support, millions of Americas are still struggling to find work as the pandemic is stirring the workforce.
Last week’s unemployment benefit numbers come out Wednesday at 8:30 a.m. ET. Economists polled by Dow Jones expect 888,000 Americans to file for unemployment last week, more than last week’s 885,000.
The US reports at least 215,400 new Covid-19 cases and at least 2,600 virus-related deaths every day, based on a seven-day average calculated by CNBC based on data from Johns Hopkins University.
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