Futures contracts linked to the Dow Jones Industrial Average lost 50 points. The S&P 500 and Nasdaq 100 futures contracts both traded around the flat line.
The Dow Jones closed the regular trading session down 107 points, or 0.3%. The drop came a day after the Dow Jones closed at a record high. The S&P and the Nasdaq Composite hit all-time highs on Tuesday before relinquishing those gains and ultimately closing lower. The S&P 500 plunged 0.35%, while the Nasdaq Composite lost 0.38%, each posting their first negative session in three.
In the middle of a bearish day on Wall Street, the S&P 500 tech sector resisted the negative trend and closed at a new all-time high. The other 10 S&P sectors plunged, with real estate leading the losses.
“After a year of 2020 that we will never forget, we look into the second half of 2021, and even 2022, with optimism for the future,” said Burt White, CEO and CIO of LPL. “We believe that we are at the start of the business cycle and that the next recession is potentially years away. “
UBS on Tuesday raised its S&P 500 target for December 2021 to 4,500, from a previous forecast of 4,400. The call is based on strong second-quarter earnings figures.
“We believe the bull stock market remains on solid footing, thanks to huge consumer cash balances, rising business investment and an ever-accommodating Fed,” the company said in a note to clients.
JPMorgan and Goldman Sachs kicked off the earnings season on Tuesday, with both banks beating both upper and lower estimates. Bank of America, Citigroup and Wells Fargo are expected to report their results before the market opens on Wednesday, as are BlackRock, PNC Financial and Delta.
A total of 23 S&P 500 companies will release quarterly results this week.
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