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US equity futures fell overnight Tuesday, despite recent strength that took major averages to record highs.
Dow futures fell 120 points. S&P 500 futures fell 0.2% and Nasdaq 100 futures fell 0.1%.
The Dow Salesforce component announced the acquisition of the Slack messaging platform for $ 27.7 billion after Tuesday’s bell. The Slack deal is the biggest contract ever made by the cloud software publisher.
The major averages appeared on Tuesday, the first day of December, adding to their strong gains from the previous month. The Dow Jones climbed 185 points, helped by a 3% jump in Apple stock. The 30-stock average hit an intraday high during Tuesday’s session.
The S&P 500 climbed 1.13% to close at a record high. The Nasdaq Composite also set a new high, closing 1.3% higher, as mega-cap tech stocks all closed in the green.
“The start of Covid-19 vaccinations is approaching, putting ‘buy on any drop’ front and center,” Jim Paulsen, chief investment strategist at the Leuthold Group, told CNBC. “After a weaker Monday session, Tuesday brought investors looking for an opportunity to increase risk exposures. Activity was boosted again today by rising bond yields alongside a stock market more solid, adding to optimism that recent economic dynamics could remain healthy despite the winter. Surge of Covid-19 cases. “
The sentiment gained momentum after a group of lawmakers unveiled a $ 908 billion stimulus package, however, Senate Majority Leader Mitch McConnell rejected the proposal later in the day. Still, investors are hoping for a second stimulus package in the limbo of Congress.
Stocks are coming off their best month in more than three decades. The Dow Jones gained more than 11% in November, recording its best one-month performance since January 1987. The S&P 500 and Nasdaq Composite rose 10.8% and 11.8%, respectively, for their strongest gains monthly since April.
The November rally was supported by positive vaccine news from several pharmaceutical companies. The developments have pushed investors towards stocks that are based on a strong economic recovery.
Despite the positive vaccine data, Federal Reserve Chairman Jerome Powell called the economic outlook “extraordinarily uncertain” on Tuesday when he and Treasury Secretary Steven Mnuchin spoke to Congress this week as part of the talks. Mandatory updates on the financing of the CARES Act. Mnuchin has asked Congress for $ 300 billion in restaurant aid as the winter months approach.
ADP’s private payroll data will be released at 8:15 a.m.ET on Wednesday. Economists polled by Dow Jones expect 475,000 private jobs to have been added in November, up from 365,000 in October.
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