U.S. stock futures fell on Tuesday, suggesting that major indices may pause after closing at record highs.
Futures linked to the S&P 500 fell 0.1% after the benchmark posted its eighth all-time high in 2021 on Monday. Futures contracts for the Nasdaq-100 technology-focused index also fell 0.21% and contracts for the Dow Jones Industrial Average fell 0.2%.
Investors said the markets are taking a break after a broad advance in stocks and commodities. The recent rise was fueled by expectations of a new dose of stimulus for spending in the United States, which could add momentum to the economic recovery. This helped to reduce expectations of turbulence in US stocks, causing the Cboe’s volatility index to drop below 22 this week, after the indicator rose to over 37 in late January.
“Very small reduced movements are a symptom of low volatility,” said Trevor Greetham, head of multiasset at UK investment firm Royal London Asset Management. “Low and decreasing volatility is a phenomenon of the bull market. You get peaceful days. “
Expectations of economic recovery this year have led money managers to bet that stocks will continue to rise, driven by sectors such as energy, banks and consumer companies that are sensitive to growth.