U.S. stock futures were slightly higher on Tuesday after the Dow Jones Industrial Average closed at a record high.
Futures linked to the 30-stock average rose by 65 points, or about 0.16%. S&P 500 futures and Nasdaq 100 futures respectively climbed 0.19% and 0.31%.
Earlier in the day, the Dow advanced 0.53% to a record close. The 30-stock index also hit an all-time high during the session. The S&P 500 added 0.28%, while the Nasdaq Composite gained 0.4%.
Investors bet that the unsuccessful assassination attempt on former President Donald Trump would be a tailwind for the Republican presidential candidate and his party in November’s election. A victory for the GOP at the polls could pave the way for favorable tax and fiscal policies for investors.
The market also continued its rotation into small-cap stocks, with the Russell 2000 rising 1.8% during Monday’s session. Tom Lee, the head of research at Fundstrat Global Advisors, thinks that last week’s big gains for the small-cap index marks just the beginning of a longer rotation. The Russell 2000 posted a 6% gain last week.
“That rally that started last week for small caps is going to be larger than the October to December rally of last year that was over eight weeks and almost a 30% gain for the Russell 2000,” he said on CNBC’s “Closing Bell: Overtime.”
Lee said that small-cap stocks look comparatively more oversold, with valuations even lower this time around.
“We think that this move could be something like 10 weeks and as much as 40%,” he added, noting that the monthly decline in June’s consumer price index reading is giving small-cap stocks “the green light” to rally.
Bank of America, Morgan Stanley, UnitedHealth and Charles Schwab are set to report earnings Tuesday before the bell. Traders will also watch for the latest economic data, which includes June’s retail sales, export and import price indexes and May’s business inventories.
European markets open lower
European stocks opened lower Tuesday as investors assess the economic and political outlook in the region and beyond.
The pan-European Stoxx 600 was down 0.5% as all sectors and major bourses traded in the red. Mining stocks led losses, down 0.97%, while autos also sank 0.9%.
The U.K.’s FTSE index was 0.29% lower at 8,159, Germany’s DAX down 0.47% at 18,504, France’s CAC 40 0.6% lower at 7,586 and Italy’s FTSE MIB down 0.51% at 34,201.
— Karen Gilchrist
Nvidia leads the S&P 500 and Nasdaq Composite higher on Monday
Nvidia was the biggest gainer for both the S&P 500 and the Nasdaq Composite during Monday’s trading session.
On the other hand, Meta Platforms was the biggest laggard for both indexes.
UnitedHealth was the most positive stock within the Dow Jones Industrial Average and helped lead the index to a new record closing high on Monday afternoon. JPMorgan marked the 30-stock index’s biggest laggard.
— Lisa Kailai Han
Stocks making the biggest moves after the bell: Trump Media, FB Financial
These are the stocks moving the most in extended hours trading:
- Trump Media and Technology — The stock was down nearly 11%. It had previously soared more than 30% during Monday’s day trading session after Saturday’s attempted assassination of former President Trump, which has increased sentiment of a Trump win in November.
- FB Financial — Shares added nearly 2% after the regional bank posted a second-earnings beat. FB Financial reported adjusted earnings of 84 cents per share, while analysts polled by FactSet had expected 76 cents. The bank also beat consensus estimates on other metrics, such as net interest income and net interest margin.
— Lisa Kailai Han
Stock futures rise slightly
Stock futures were slightly higher on Monday night.
Dow futures added 42 points, or 0.1%, shortly after 6 p.m. ET. S&P 500 futures and Nasdaq 100 futures respectively added 0.1% and 0.2%.
— Lisa Kailai Han