U.S. stock futures were little changed early Tuesday after smaller companies led advances on Monday.
Futures for the Dow Jones Industrial Average lost 50 points, or 0.1%. S&P 500 futures were down 0.2% and contracts tracking the technology-heavy Nasdaq were also up 0.1%. The Dow finished up 0.5% at a record high Monday, while the S&P and Nasdaq rose 0.3% and 0.4% respectively.
Unlike for much of the past year, it was companies with smaller market values that led the charge, rather than the big names of Nvidia, Microsoft, Apple, or Tesla. The Russell 2000 index of small-cap stocks finished at its highest since 2022. Earnings from big banks such as Bank of America and Morgan Stanley, as well as economic data on retail sales, could move the market on Tuesday.
“The market environment remains supportive, driven by durable profit growth, improving inflation leading to potential Fed rate cuts, and robust spending on artificial intelligence,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “At the margin, while earnings are still growing, momentum might be softening as the macro data are pointing to a cooling economy.”
Bond yields were lower. The yield on the benchmark 10-year U.S. Treasury bond was at 4.194% early Monday compared with 4.215% Monday. The yield on the 2-year note was at 4.442%, compared with 4.453%.