Stock futures fall after Tuesday’s broad rebound, continuing choppy start to October
06 Oct 2021
Stock futures fell in overnight trading after the market rebounded Tuesday from a tech-led sell-off the day prior.
Futures on the Dow Jones Industrial Average slipped 113 points. S&P 500 futures and Nasdaq 100 futures traded in negative territory.
The market saw a broad rally during Tuesday’s regular session with nine out of 11 S&P 500 sectors closing positive. The Dow gained 312 points, or 0.92%. The S&P 500 rose 1.05% and the Nasdaq Composite rallied 1.25%.
Mega-cap tech stocks closed higher Tuesday after being knocked down the prior trading session. Facebook stayed in focus following a lengthy outage and claims by a whistleblower that the company knows it’s harming people.
The financial sector finished Tuesday as the best performing segment of the S&P 500, up 1.78%. Other sectors geared toward a recovering economy also saw shares rise. Energy names gained as oil prices climbed. Cruise, airline and retail stocks also advanced.
A better-than-expected manufacturing reading Tuesday aided optimism about the economic recovery. The Institute for Supply Management’s services purchasing managers’ index report for September rose to 61.9 from 61.7 in August, 0.2 points better than expected.
“Investors lean into risk on the back of another strong business sentiment survey that may suggest that the Delta-driven growth slowdown of late summer is already a thing of the past,” Goldman Sachs’ Chris Hussey said in a note Tuesday.
Denim retailer Levi Strauss and alcoholic beverage corporation Constellation Brands are set to report quarterly earnings Wednesday.
The ADP private payrolls report for September is set to be released Wednesday. Also on the labor market front, the closely watched nonfarm payrolls report for September is slated for release Friday.