Stock futures down following a strong rally on Wall Street

Stock futures were lower in early Tuesday trading after a solid rally on Wall Street to start the week.

Futures on the Dow Jones Industrial Average fell 176 points, while S&P 500 futures and Nasdaq 100 futures also traded in negative territory.

The overnight action followed a strong day on Wall Street that saw the Dow jumping more than 450 points. The S&P 500 gained 1.5% on Monday for its fifth straight positive session, while the Nasdaq rose 2.2% to hit an all-time high. 

The biggest technology shares built on their momentum as Amazon surged 5.7% to trade above $3,000 apiece for the first time ever. Netflix jumped 3.5% to hit a record high, while Apple, Microsoft, Google-parent Alphabet and Facebook all gained at least 2% each on Monday. 

The market continued to shrug off a continuous rise in coronavirus cases across the U.S. The number of people hospitalized with Covid-19 grew by 5% or more Sunday in 23 states, including Texas, which reported a record of more than 8,000 hospitalizations on Sunday. California Gov. Gavin Newsom on Monday asked six additional counties to close their indoor businesses.

“While we expect continued volatility, we think there are grounds for optimism that economies and markets can weather the recent acceleration in infections,” Mark Haefele, chief investment officer at UBS, said in a note. “There are signs that healthcare systems are coping better with COVID-19, reducing the need for restrictions on freedom of movement. Economic data continues to point to resilience.”

The Labor Department will release the May figure for job openings on Tuesday at 10:00 a.m. ET. Economists polled by Dow Jones expect the total vacancies to drop to 4.5 million in May from 5.05 million in April, which was the lowest total since December 2014.

The government’s Job Openings and Labor Turnover Survey is a month behind the more closely followed nonfarm payrolls report, which showed a surge of 4.8 million in June and a 2.7 million jump in May.

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