U.S. stock futures fell Tuesday, suggesting indexes will ease back from all-time highs, as investors awaited fresh data on the retail and manufacturing sectors.
Futures tied to the S&P 500 and the Dow Jones Industrial Average lost 0.5%. Both indexes closed Monday at fresh records, notching a five-day winning streak. For the blue-chip Dow index, it was the first such run in almost four years. Contracts tied to the technology-heavy Nasdaq-100 retreated 0.4% Tuesday.
Markets have ground higher in muted midsummer trading as coronavirus vaccinations allow the resumption of business and social activity in many developed economies. But concerns about the spread of the Delta variant of Covid-19 have sparked jitteriness in recent sessions as it threatens to crimp the economic rebound. Expectations that the Federal Reserve will soon move to ease its stimulus measures are also hanging over investors.
“The Delta variant has hit the confidence of the average American, so we need to watch that for ripple effects on the economy,” said David Donabedian, chief investment officer at CIBC Private Wealth. “This is going to be a chronic issue causing some volatility in markets.”
Still, investors largely expect any market turbulence to be fleeting, he added.