Stock Futures Higher After Record Closings for S&P500, Nasdaq

31 Aug 2021 · 3rd Party Analysis

Stock Futures Higher After Record Closings for S&P500, Nasdaq


In Summary

  • Equity futures on Wall Street point to a higher open on Tuesday
  • The S&P500 and the Nasdaq sit on all-time highs, poised to continue their record runs

Stock futures rose in overnight trading, looking to add further gains to the strong upside swing from Monday. Futures contracts tied to the Dow Jones Industrial Average gained almost 0.3%. Futures on the S&P500 were higher by more than 0.3%, while Nasdaq futures advanced almost 0.4%.

Major US equity indexes on Monday turned mostly higher with the Dow Jones Industrial Average being the only decliner. The S&P500 and the Nasdaq Composite posted a new set of records, their second straight record-setting daily performance.

Since Federal Reserve Chairman Jerome Powell commented the US central bank will wait to raise rates after it reduced the monetary support, investors have elevated their confidence major indexes had more room for growth.

Monday’s session marked S&P500’s 53rd record close of the year, already more than in each of the past three full years. The Nasdaq Composite saw its 32nd record close since the first trading day of 2021.

The broader blue-chip benchmark added almost half a percent on Monday to close at a new all-time high of 4,528.79. The tech-heavy Nasdaq Composite surged 0.9% to close at 15,265.89. The 30-stock Dow Jones Industrial Average fell 0.16% to 35,399.84.

Tech Stocks Perform

Stocks in the technology sector were among the biggest winners, while real-economy companies struggled to perform.

The recent striking series of record runs for the major stock gauges come amid both heightened uncertainties related to Covid-19 and elevated optimism underpinned by consistent Federal Reserve support, coupled with strong fiscal stimulus from the White House. Mixed economic reports are occasionally sending nervy tilts among market participants.

Fresh Covid-19 data showed US daily cases rose to more than 280,000 on Monday, threatening to eclipse the peak of 300,777 reported on January 8. Moreover, the US daily death rate has topped 1,000 for the first time since March.

Despite the surge in coronavirus infections, investors’ mood remains upbeat after Fed Chair Jerome Powell said Friday the US central bank will keep its policies supportive, even after bond purchases are scaled back most likely this year.

As US futures keep firmly to the upside on Tuesday, European markets opened mixed. The Stoxx Europe 600 trades slightly higher, while major European stock averages swing from gains to losses. Stocks in Europe have been rather jittery recently as inflation expectations threaten to overshadow the expansion of major economies in the bloc.

In signs of surging prices, Germany reported its consumer price index rose to 3.4% in August, up from 3.1% in July. The growth rate marks Germany’s fastest pace of inflation since 2008. The European Central Bank, similarly, to its US counterpart, believes inflation pressures are a result of the reopening and will fade in the coming months. Eurozone inflation is expected to rise from 2.2% in July to 2.7% in August. The inflation figures for August are slated for release on Tuesday.

In the digital asset space, bitcoin and its peers trade relatively subdued on Tuesday. The original cryptocurrency is lower by about 2% on the day, changing hands at around $47,500. Ether, the second-largest token, is currently trading near $3,300 per coin, little changed on the day.

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