Stock futures inch higher after S&P 500 closes in correction
U.S. stock market futures were modestly higher in overnight trading Tuesday after the S&P 500 closed in correction territory amid escalating tensions between Russia and Ukraine.
Futures contracts tied to the Dow Jones Industrial Average advanced 85 points. S&P 500 futures gained 0.35%, while Nasdaq 100 futures rose 0.5%.
During regular trading the Dow fell 483 points, or 1.42%, for its fourth straight negative session. At one point the 30-stock benchmark had been down more than 700 points. The S&P 500 shed 1.01%, and is now 10.25% below its Jan. 3 record close, putting the broad market index in correction territory. The Nasdaq Composite declined 1.23% for its fourth straight negative session.
On Tuesday afternoon President Joe Biden announced a first tranche of sanctions against Russia. The measures target Russian banks, the country's sovereign debt and three individuals.
«While uncertainties remain, our work shows that historically military/crisis events tend to inject volatility into markets and often cause a short-term dip, but stocks tend to eventually rebound unless the event pushes the economy into recession,» Eylem Senyuz, senior global macro strategist at Truist wrote in a note to clients.
«Investor sentiment also suggests the bar for positive surprises is low,» the firm added.
All 11 S&P 500 sectors declined on Tuesday, led to the downside by consumer discretionary stocks, which fell 3%. Energy stocks moved lower despite a jump in oil prices. International benchmark Brent crude traded as high as $99.50 per barrel. West Texas Intermediate crude futures, the U.S. oil benchmark, hit a session high of $96, a price last seen in August 2014.
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