Stock futures opened Tuesday night near the flat line, after the S&P 500 broke above its February high to set a fresh record earlier in the day.
The S&P 500’s advance on Tuesday brought the overall profit of its March low to 52%. And after declining its previous record high, the S&P 500 ended the shortest-to-record bear mark, as a period after a 20% drop in the share of troughs.
Tuesday’s progress came as shares of major tech stocks rose again, with Amazon (AMZN) shares rising 4% to its own record after the company announced plans to add thousands more jobs to major hubs in the land. The rise in tech names – and in the Nasdaq Composite, which was also at an all-time high on Tuesday – reflects the trend of the past several months in stock markets as investors stepped heavily in software and technams as defensive play against the orders for pandemic and stay.
However, the market’s rise to new heights, as millions of Americans remain unemployed at the hands of the coronavirus pandemic, and as the prospects for another fiscal incentive package hang in the balance.
But as many analysts have noted, the market has the future rather than the current one, with an abundance of new data coming in better than feared and on an improving track relative to trends seen earlier this spring. Virus growth rates have begun to decline, even in recent epicenters in the South and West. And data on the housing market, retail sales and manufacturing activity have shown pockets of the economy that at least began to recover from some of the damage done during the height of orders on housing.
“Many people believe that the market does not reflect the reality of the underlying health and economic crisis – that is because the market is focused on the future versus what is happening in real time,” said Peter Giacchi, chief executive officer. floor trade of the maker for Citadel Securities, said in an email.
“The reason we saw real-time record lows at the beginning of the pandemic was because of the uncertainty surrounding the virus,” he added. “Now that investors have the situation to a certain extent, the movements have become more progressive, more optimistic and behave the market as it has historically been until now.”
Ahead of Wednesday, another batch of large retailers were set up to report results, including Lowe’s (LOW), Target (TGT) and TJX Companies (TJX). On Tuesday, Home Depot and Walmart reported all sales and profits in the second quarter that fell short of expectations, but advised after an uncertain second half of the year as the pandemic continued and led to immediate controls and improved unemployment benefits for consumers. disappeared. The results and comments led peer retailers Lowe’s and Target, respectively, to report similar trends.
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6:07 pm ET Tuesday: Stock futures open flat after record closes
Here are the main movements in stock markets, from 6:07 pm ET:
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S&P 500 futures (ES = F): 3,387.00, plat
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Dow futures (YM = F): 27.719.00, 2 points up, if 0.01%
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Nasdaq futures (NQ = F): 11,477.75, 2.5 points down, if 0.02%
A trader works on the floor of the New York Stock Exchange shortly after the opening clock in New York, August 18, 2015. The Commerce Department’s report on Tuesday added solid wages, retail sales and industrial output data suggesting the economy started to be a strong start in the third quarter. The steady stream of emerging economic reports has improved perceptions that the Federal Reserve will raise interest rates in September. REUTERS / Lucas Jackson TPX PHOTOS OF THE DAY
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