Tourists visit the Wall Street bull statue in the Financial District of New York City.
Drew Angerer | Getty Images
US stock futures opened slightly lower Tuesday night after the S&P 500 ended a seven-day winning streak, the longest since August.
The Dow Jones Industrial Average futures fell 54 points, or 0.16%. S&P 500 and Nasdaq 100 futures were down 0.10% and 0.06%, respectively.
During regular trading hours, the 30-share Dow fell 208.98 points, or 0.6%. The S&P 500 ended the day down 0.2%. The Nasdaq Composite gained almost 0.2%. The tech-heavy index rose to a new all-time high on Tuesday.
Investors may fear that the economy is nearing its peak and that a correction is imminent. In addition to the complacency of the market, the combination of profit margin pressures, fears of inflation, Fed tapering and possible higher taxes could all contribute to an eventual decline, market strategists say.
Recovery stocks like Caterpillar, Chevron and JPMorgan Chase fell on Tuesday, while big tech stocks like Amazon, Apple and Alphabet rose. Energy stocks took a hit after West Texas Intermediate crude oil futures reached their highest level in more than six years before falling into negative territory.
The 10-year government bond yield fell 7.2 basis points to 1.36% as investors respond to the potential for slower economic growth. That was the lowest level since February. The yield on the 30-year government bond was 6.4 basis points lower at 1.98%.
Investors will hear more clues as to the direction of Federal Reserve monetary policy when it releases its latest minutes of meetings on Wednesday afternoon, which could be a catalyst for movement in both bonds and stocks.
The Fed’s minutes are expected to be cautious as the central bank seeks progress in the job market rather than worrying that recent inflation will become a sustained trend. A slowdown in bond purchases would be the Fed’s first major retreat from the loose policies it put in place when the economy closed last year.
The end of the Fed’s $ 120 billion monthly government and mortgage purchases would also signal that the central bank’s next move could be to hike rates.
Weekly mortgage applications and the survey on job vacancies and labor turnover are also due to be released on Wednesday.
– CNBC’s Patti Domm contributed to the coverage.