Stock futures are stable in overnight trading as the S&P 500 nears its all-time high



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A pedestrian walks past the New York Stock Exchange.

Michael Nagle | Bloomberg | Getty Images

Stock futures were flat Monday night after the S&P 500 had yet to hit a record high, a level set before the coronavirus crisis hit.

Futures contracts on the Dow Jones Industrial Average fell about 10 points. The S&P 500 and Nasdaq 100 futures contracts were both little changed.

The S&P 500 closed Monday’s session up 0.3%, just below its closing record of 3,386.15 on February 19.

The market has remained stuck in a narrow range as hopes for a new coronavirus stimulus deal faded as lawmakers were unwilling to break a deadlock. Democrats and Republicans are holding their respective presidential nominating conventions this week and next year.

“Markets lack a catalyst to help markets overcome technical resistance,” said Mark Hackett, Nationwide’s chief investment officer, in a note. “The S&P 500 had its best 100-day move in history, and therefore incorporates optimistic assumptions about economic recovery and fiscal stimulus. These factors will need to surprise on the upside to push markets significantly higher.”

The S&P 500 rallied more than 50% from its March low amid massive fiscal stimulus and better-than-feared results. The high tech Nasdaq Composite hit a new closing high and intraday high in Monday’s session, pushing its 2020 gains to 24%.

Meanwhile, tensions between the United States and China have always held investors at bay. The Trump administration on Monday said it would further tighten restrictions on Huawei, aimed at cracking down on the Chinese telecommunications giant’s access to commercially available chips.

Investors will watch retail heavyweights Home Depot, Walmart and Kohl’s earnings before the bell on Tuesday to assess how the industry has weathered the unprecedented disruption of the pandemic.

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