US stock futures fell on Tuesday, suggesting the major indices could pause after closing at record highs.
Futures pegged to the S&P 500 fell 0.1% after the benchmark meter hit its eighth all-time high in 2021 Monday. Futures for the technology-focused Nasdaq-100 index also fell 0.21% and contracts for the Dow Jones Industrial Average by 0.2%.
Investors said the markets are taking a breather after a broad boom in stocks and commodities. The recent rally was fueled by expectations of a fresh dose of stimulus spending in the US, which could boost the economic recovery. That helped lower expectations for turbulence in US equities, causing the Cboe Volatility Index to fall below 22 this week after the meter rose above 37 in late January.
“Very small downsized moves are a symptom of low volatility,” said Trevor Greetham, head of multi-asset at British investment firm Royal London Asset Management. “Low and falling volatility is a phenomenon in the bull market. You do get quiet days. “
Expectations for the economy to rebound this year have prompted money managers to bet stocks will remain higher, driven by sectors such as energy, banking and consumer businesses that are prone to growth.