U.S. Stocks May Give Back Ground In Early Trading

After moving sharply higher over the past several sessions, stocks may give back ground in early trading on Tuesday. The major index futures are currently pointing to a modestly lower open for the markets, with the Dow futures down by 68 points.

Traders may take a breather following the strong upward move seen in recent days, which has driven the major averages to new record highs.

The Dow and the S&P 500 have both closed higher for six consecutive sessions, while the Nasdaq has risen in five out of the past six sessions.

Profit taking may contribute to initial weakness on Wall Street, although any selling pressure is likely to be relatively subdued as traders worry about missing out on further upside.

Optimism about more fiscal stimulus may also provide support for the markets along with the recent slowdown in coronavirus infection rates.

House Democrats have unveiled a proposal providing $1,400 stimulus checks to individuals making up to $75,000 a year and couples who earn up to $150,000 a year.

Those income levels are unchanged from previous stimulus checks, although the proposal would phase out payments faster than previous bills and completely cut off individuals making more than $100,000 and couples making more than $200,000.

Following the strong upward move seen last week, stocks saw continued strength during trading on Monday. With the continued advance, the major averages all ended the session at new record closing highs.

The major averages saw further upside going into the close, finishing the day at their highs of the session. The Dow climbed 237.52 points or 0.8 percent to 31,385.76, the Nasdaq jumped 131.35 points or 1 percent to 13,987.64 and the S&P 500 advanced 28.76 points or 0.7 percent to 3,915.59.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index rose by 0.4 percent, while Australia’s S&P/ASX 200 Index slid by 0.9 percent.

Meanwhile, European stocks have moved mostly lower on the day, with the pan-European Stoxx 600 Index edging down by 0.2 percent. The German DAX Index has also fallen by 0.3 percent, while the U.K.’s FTSE 100 Index and the French CAC 40 Index are both nearly unchanged.

In commodities trading, crude oil futures are slipping $0.21 to $57.76 a barrel after jumping $1.12 to $57.97 a barrel on Monday. Meanwhile, after soaring $21.20 to $1,834.20 an ounce in the previous session, gold futures are climbing $10.70 to $1,844.90 an ounce.

On the currency front, the U.S. dollar is trading at 104.66 yen compared to the 105.23 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.2096 compared to yesterday’s $1.2050.

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