Dow, S&P 500 prepares to take a breather after record soars

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On Tuesday, US stocks appeared to pause after the Dow Industrial Index and S&P 500 Index finished at records on the first trading day after Easter, supported by evidence of a strong economic recovery from the coronavirus pandemic this year. Investors can also keep an eye out for an update later Tuesday on the global economic outlook from the International Monetary Fund, as the world reacts to vaccine distribution and fiscal and monetary support provided by the governments of Europe and the United States in middle of the pandemic.

Take a look: A bitcoin revolution is taking place and MarketWatch is gathering a cast of crypto experts to explain what it all means. How are equity benchmarks performing? Futures for the Dow Jones Industrial Average YMM21, -0.08% YM00, -0.08% decreased 0.1%, or 45 points, to reach 33,370. S&P 500 ES00 Index futures, -0.15% ESM21, -0.15% fell 9.95 points to 4,057.75, a drop of 0.2%. Nasdaq-100 futures NQM21, -0.17% NQ00, -0.17% lost 37.25 points, or 0.3%, to 13,548.75. On Monday, the Dow DJIA, + 1.13% rose 373.98 points, or 1.1%, to 33,527.19, marking its 18th closing record of 2021, the S&P 500 SPX index, + 1.44% finished 58.04 points, or 1.4%, higher than a record. closed at 4,077.91, while the Nasdaq Composite Index COMP, + 1.67% ended up 225.49 points, or 1.7%, at 13,705.59, 2.8% less than its record close. February 12. Amid evidence that the COVID rally in the US is underway, investors are focusing on the prospect of increased fiscal support and increased corporate taxes. The independent Senate MP ruled Monday in favor of a Democratic effort to pass additional legislation through a process called reconciliation, which could pave the way for Democrats to pass President Joe Biden‘s $ 2.3 trillion infrastructure bill. . However, Joe Manchin, a Democratic senator from West Virginia, said he would not support raising the corporate tax rate to 28% from the 21% proposed by Biden to fund the infrastructure package, Axios reports. Manchin’s stance suggests that the infrastructure move could still face challenges within his own party despite the use of the reconciliation procedure. The infrastructure plan is seen as a much-needed measure to rebuild old roads, bridges, tunnels and airports in the United States, as well as to invest in broadband internet, strengthen energy and water supplies, and prepare for climate change. “The three pillars of all-time stock market highs are ultra-relaxed monetary policy, fiscal support and the pudding test: economic recovery,” wrote Neil Wilson, chief market analyst at Markets.com. “[Federal Reserve Chairman] Jay Powell has (for now) left skeptics about point one, while Biden’s Covid aid package and infrastructure bill are more than meeting point two (and partially point three) by injecting into somewhere in the region 20% of US GDP the system, ”he said. Looking outside the US, the IMF on Tuesday is expected to raise its forecasts for global economic growth in 2021 thanks to success with vaccines and trillions of dollars of economic support being distributed. In January, the IMF forecast for 2021 was for 5.5% growth. On the other hand, details were still emerging of the fallout from the implosion of Archegos Capital Management, led by Bill Hwang, who failed to honor margin calls after placing highly leveraged bets on a handful of stocks. Credit Suisse Group AG CS, + 1.59% said it would take a charge of $ 4.7 billion and a loss of almost $ 1 billion. The bank said it would cut its dividends and announced the departure of two executives, Brian Chin, director of investment banking and director of risk and compliance, Lara Warner. What companies are in focus? Illumina Inc. ILMN shares were in focus after the biotech company said Monday night that it expects first-quarter revenue to exceed $ 1 billion thanks to “record” orders and revenue growth. in its genetic sequencing and related businesses. Novavax Inc. NVAX said Monday night that it plans to expand its COVID-19 vaccine trials to include children and adolescents in the second trimester.