Futures Drop after S&P 500’s Best Day in 9 Months

The S&P 500 ended 2.4% on Monday, its highest since June. U.S. markets were cheering for approval of a third COVID-19 vaccine. Also, optimism and hopes for the $1.9 trillion coronavirus relief package.

U.S. stock index futures dipped on Tuesday following Wall Street’s strong start to March with investors monitoring the bond market. They were also watching the progress on the next round of fiscal stimulus.

This week, the U.S. Senate will start debating over President Joe Biden’s relief bill. Democrats were aiming to pass the legislation through a maneuver known as “reconciliation,”. This would allow the bill to pass with a simple majority.

Dow E-minis were down 65 points, or 0.21% at 6:32 a.m. ET.  Moreover, 500 E-minis were down 13 points, or 0.33%. The Nasdaq 100 E-minis declined 47.5 points, or 0.36%.

Since a selloff sent the benchmark 10-year Treasury yield to a one-year high last week, the U.S. bond markets have stabilized. This causes worries over high valuations in the stock market and emerges as a competitive alternative to equities

Investors will focus on ISM’s service sector survey later in the week. They will brace for the monthly U.S. jobs report as well, to ascertain the economic health.

Dipping between 0.3% and 1.1% premarket were Bank of America Corp, Citigroup Inc., and JPMorgan Chase & Co. In addition, Wells Fargo & Co and Morgan Stanley also declined within the same range.

Company Stocks on the Move

Zoom Video Communications Inc rose about 10% after forecasting current-quarter revenue above estimates. It expected millions of people to continue using its video-conferencing platform.

GameStop and other “meme” stocks AMC Entertainment and Koss off about 1% and 4.4%. This came after a sharp surge on Monday.

Target stock inched up 0.2% after the retail giant beat estimates for holiday quarter sales. It is fueled by the firm’s same-day delivery and store pick-up services. 

Moreover, retailer Kohls stock edged up 1.1% after reporting strong fourth-quarter earnings and sales. It pointed to stronger growth in 2021 with a decision  to reinstate its dividend and buy back shares.

The streaming platform Roku Stock gained 1.5% after announcing it’s acquiring Nielsen’s Advanced Video Advertising unit. This was an attempt to become a central hub for TV advertising.

Novavax declined 4.5% after the vaccine developer reported weaker-than-expected Q4 results. CEO Stanley Erck said however, they expect approval for its Covid-19 vaccine in May.