Stock futures decline after a solid start to May, tech shares set to fall

Stock futures fell on Tuesday, with tech shares set to lead the decline. The pullback follows a strong start to May as investors on Monday piled into shares that would benefit the most from an economic reopening. Futures on the Dow Jones Industrial Average lost 107 points. S&P 500 futures fell 0.45%. Futures for the tech-heavy Nasdaq-100 were the hardest hit, dropping 0.8%. Futures on the S&P 500 were basically flat most of the morning before selling increased in tech stocks and Nasdaq futures.

Apple, Tesla and Alphabet were all down 1% and at their session lows in the premarket. Countering that move were stocks rising on strong earnings. Pfizer shares rose 1% in premarket trading after posting quarterly results that beat expectations and raising its 2021 guidance. CVS Health shares jumped 3% after the pharmacy chain and insurance company also raised its guidance.

United States Steel moved 3% higher in premarket trading after Credit Suisse upgraded the stock to outperform from underperform, saying that the surge in prices for steel made it clear that the industry was in a “super cycle.” The move in futures occurred as investors jockeyed to pick which shares to ride and which shares to dump from here with the market at all time highs. Investors are torn between playing the reopening with shares like retailers or continuing to bet on Big Tech, which just reported blockbuster earnings.

The move in futures followed solid gains for the Dow on Monday. The 30-stock benchmark rallied more than 200 points, while the S&P 500 inched up 0.3%. Retail stocks led the market advance with Gap and Macy’s rallying more than 7%. Dillard’s rose nearly 10%, while Urban Outfitters and Kohl’s both gained more than 5%.

Stock futures decline after a solid start to May, tech shares set to fall, CNBC, May 4