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U.S. equity futures fell on Tuesday, suggesting that major indices may take a break after closing at record highs.
Futures contracts linked to the S&P 500 edged down 0.1%, after the benchmark gauge posted its eighth all-time closing high on Monday in 2021. Futures on the Nasdaq-100 index focused on technology also fell 0.21% and contracts on the Dow Jones Industrial Average fell 0.2%.
Investors said the markets were taking a break after a large advance in stocks and commodities. The recent rally has been fueled by expectations of a new dose of stimulus spending in the United States, which could give momentum to the economic recovery. This helped lower expectations of turbulence in US stocks, pushing the Cboe volatility index down this week to below 22, after the gauge jumped to over 37 at the end of January.
“Very small downsizing moves are a symptom of low volatility,” said Trevor Greetham, multi-asset manager at UK investment firm Royal London Asset Management. “Low and falling volatility is a bull market phenomenon. You have calm days.
Expectations for the economy to rebound this year have made fund managers bet that stocks will continue to gain momentum, led by sectors such as energy, banking and growth-sensitive consumer companies.
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