Stock futures fall slightly in overnight trading after S&P 500 closes at a record

Traders work on the New York Stock Exchange.

Brendan McDermid | Reuters

Stock futures fell overnight on Sunday after a rush of broad late buying pushed the S&P 500 to a record high in the final minutes of the previous session.

The futures on the Dow Jones Industrial Average fell 110 points. S&P 500 futures and Nasdaq 100 futures both traded 0.4% lower.

On Friday, all three major benchmarks rebounded by the end of their session highs, and the blue-chip Dow closed about 450 points higher. The S&P 500 eventually rose 1.7% to hit a record high. The Nasdaq Composite erased a 0.8% loss and ended up 1.2% on Friday.

Traders are preparing for increased volatility during this week with shortened public holidays, with the end of retirement being rebalanced between pension funds and other major investors at the end of the quarter. The recent rapid surge in bond yields could set money managers up for big adjustments in their portfolio.

The Dow and S&P 500 are up 6.9% and 4.3% respectively so far in March. However, the tech-heavy Nasdaq is down 0.4% this month as some investors jumped soaring tech names on rising yields.

Investors are waiting for updates from President Joe Biden about his infrastructure plan, which could cost north of $ 3 trillion. The president is expected to reveal his plan when he travels to Pittsburgh on Wednesday. White House Press Secretary Jen Psaki said Sunday Biden plans to roll out two packages in the coming months, the first for infrastructure and the second for health and family care.

“The market doesn’t set very high chances that this infrastructure / tax plan will materialize, and while Biden is unlikely to get everything he asked for, Congress Democrats and the White House are VERY keen to get some substantial bills off the ground in the months ahead “Said Adam Crisafulli, founder of Vital Knowledge, in a note.

The exchange is closed for Good Friday, but the job report for March is due to be published this morning. Economists estimate that 630,000 jobs were created in March and the unemployment rate fell from 6.2% to 6%, according to the Dow Jones.

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