Stock market news live updates: Stock futures rise to recover some earlier losses

Stock futures opened larger Tuesday night to recover some losses from earlier within the day. 

During the common session, the Dow dropped by greater than 300 factors, or about 1%, for its worst session in almost three weeks. The S&P 500 additionally dipped, and the Nasdaq shed greater than 1% as know-how shares added to current declines. Many of the cyclical shares that had led markets larger for a lot of the final three months underperformed, and the industrials, power and financials sectors lagged. Treasury yields steadied, and the benchmark 10-year yield retreated to about 1.62% from final week’s excessive of greater than 1.75%. 

“I think what we’ve seen over the past couple days is some end-of-quarter positioning,” Tom Essaye, Sevens Report Research founder, informed Yahoo Finance. “The best performers quarter-to-date are getting sold right now, some of the worst performers are rallying. That’s typical as we end a quarter.” 

“But then also, the outlook on COVID has dimmed a bit – not so much here in the United States, but definitely in Europe, where they seem to be experiencing a third wave,” he added. “The vaccine rollout there is not going so well as we know, and now you’re seeing increased lockdowns.” 

Investors have additionally been digesting remarks from a parade of Federal Reserve audio system this week. Much of the commentary has served to reinforce the central financial institution’s stance that any inflation showing this 12 months will likely be transitory, and never vital sufficient to warrant a shift of their financial coverage positioning. Last week, the Federal Reserve’s up to date projection materials confirmed the median forecast amongst Federal Open Market Committee individuals continues to be to maintain benchmark rates of interest close to zero via not less than 2023. 

Federal Reserve Chair Jerome Powell informed the U.S. House Committee on Financial Services on Tuesday that he expects a short lived improve in inflation within the coming months in contrast to the identical interval final 12 months, however that the forthcoming rises will likely be short-lived since so many Americans will nonetheless be out of labor because the financial system recovers from the pandemic. 

Other members of the Federal Open Market Committee echoed comparable sentiments. Federal Reserve Governor Lael Brainard said during a virtual event Tuesday that “it will take some time to achieve substantial further progress” on the Fed’s objectives of reaching most employment and sustainable 2% inflation. She advocated “a patient approach based on outcomes rather than a preemptive approach based on the outlook” as a extra environment friendly technique of reaching the central financial institution’s objectives, suggesting the Fed would keep the course whilst prospects of a soar in inflation spook some market individuals. 

6:06 p.m. ET Tuesday: Stock futures open larger 

Here’s the place markets had been buying and selling because the in a single day session kicked off on Tuesday:

  • S&P 500 futures (ES=F): 3,902.25, up 2.5 factors or 0.06%

  • Dow futures (YM=F): 32,327.00, up 21 factors or 0.07%

  • Nasdaq futures (NQ=F): 13,038.25, up 32 factors or 0.25%

People stroll previous the New York Stock Exchange (NYSE) and a statue of George Washington at Wall Street on March 23, 2021 in New York City. – Wall Street shares had been below strain early forward of congressional testimony from Federal Reserve Chief Jerome Powell as US Treasury bond yields continued to retreat. (Photo by Angela Weiss / AFP) (Photo by ANGELA WEISS/AFP by way of Getty Images)

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

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