U.S. stock futures were little changed early Tuesday after the market had its strongest session in several weeks a day earlier.
Futures tied to the Dow Jones Industrial Average added 9 points. The move indicated basically a flat open. S&P 500 futures lost 0.15% and Nasdaq-100 futures fell 0.3%.
Traders were also waiting on a speech from Federal Reserve Chairman Jerome Powell, who is expected to tell the National Association of Business Economists on Tuesday that a new stimulus is needed to keep the economic recovery from stalling.
Stocks soared in Monday session as investors grew more optimistic about President Donald Trump’s health and the possibility of additional economic relief. The Nasdaq Composite led the way with a 2.3% climb, while the S&P 500 and Dow jumped 1.8% and 1.7%, respectively. That marked the best performances for the Nasdaq and S&P 500 since Sept. 9 and the best day for the Dow since July 14.
Trump left Walter Reed National Military Medical Center on Monday night, though White House physician Dr. Sean Conley acknowledged earlier in the day that Trump “may not entirely be out of the woods yet.”
Meanwhile, House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke for an hour on Monday regarding another stimulus package but did not reach an agreement. Pelosi’s spokesman Drew Hammill said in a tweet that the two planned to speak again on Tuesday.
The rally on Monday was broad, with the Russell 2000 gaining 2.8% for the small-cap index’s sixth positive session in seven. Chris Ailman, the chief investment officer for CalSTRS, said on CNBC’s “Closing Bell” that the participation of smaller stocks was a good sign for markets.
“Personally, I think I’m pretty concerned about the risks in front of us, the fact that the market is so top-heavy in the famous five stocks. But it was good to see the small caps do well today. I think that’s healthier for the market,” Ailman said. “We need a stimulus. The bottom line is this is a health crisis, and the health crisis is far from over.”
Investors will get another look at the job market recovery on Tuesday morning when the Labor Department releases its Job Openings and Labor Turnover Survey at 10 a.m. ET. The reading comes after Friday’s jobs report for September showed weaker-than-expected labor market growth.
Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.
