Futures ease after record rally on brightening economic outlook

FILE PHOTO: A U.S flag is seen on the New York Stock Exchange in the Manhattan borough of New York City, New York, U.S., November 6, 2020. REUTERS/Carlo Allegri/File Photo

(Reuters) – U.S. stock index futures fell on Tuesday as investors locked in some gains after the S&P 500 and the Dow closed at record highs on renewed recovery hopes.

The S&P 500 has risen for three straight sessions with volatility index retreating to pre-pandemic lows, driven by scores of fiscal stimulus and swift vaccinations.

Tech and other growth stocks have awakened after lagging in recent weeks behind so-called value stocks expected to outperform as the economy emerges from the coronavirus pandemic.

The tech-heavy Nasdaq is now about 3% from its February record high after falling as much as 12% from that level.

Progress in President Joe Biden’s new infrastructure proposal and the start of the earnings season in the coming weeks could dictate the course of stock markets, analysts said.

Later in the day, investors will turn to a reading of U.S. job openings for February. The data follows blowout employment as well as service sector reports for March.

At 6:26 a.m. ET, Dow E-minis were down 58 points, or 0.17%, S&P 500 E-minis were down 10.25 points, or 0.25% and Nasdaq 100 E-minis were down 38.75 points, or 0.29%.

Snap Inc rose 1.5% premarket after Atlantic Equities upgraded its rating on the photo-messaging app owner’s shares to “overweight” from “neutral”.

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