US stock futures were volatile on Tuesday. Investors were awaiting data on consumer confidence levels a day after the index hit a new record.
Futures are linked to the S&P 500 index that fluctuates between profit and loss. The broad market gauge ended Monday at its 32nd all-time close of the year, led by a surge in the tech sector. Nasdaq-100 futures were down 0.2% on Tuesday. Indicates that big tech stocks may give up partially at the opening bell.
Stocks have been rising in recent weeks. This was driven by investor confidence in the economic recovery and fresh government spending trends. Money managers remain wary of COVID-19 Will the high-permeable epidemic slow the global economic recovery or disrupt the supply chain for key commodities? Still, most people expect stocks to skyrocket. This is due to the low yields coming from bonds and the continued financial support for the economy.
“We have to keep running when it comes to stocks. But I think there is a pattern of the coming summer. And possibly we saw some zigzags,” said Daniel Egger, chief investment officer at St Gotthard Fund Management. “I wouldn̵7;t be surprised to see some airbags coming in when the market reverses a bit.”
Mr Egger said he likes the UK stock market because of the high concentration of banks and mining companies. “We think commodities will be a very attractive asset class. After they have been in a stagnation for a while,” he said, pointing to the persisting concerns about inflation.