Tuesday's Market Minute: Stock Rally Halted Monday

U.S. stock futures are pointing to a higher open Tuesday as investors hope for any announcements of future economic stimulus ahead of President-elect Joe Biden’s inauguration on Jan. 20. That comes as COVID-19 continues to spread. In the U.S., cases topped 22 million Monday while global cases rose above 90 million.

Stocks fell Monday, breaking a 2021 winning streak for the major U.S. equity indices except the Nasdaq-100 (NDX). The NDX ended the session with the most losses, down 1.55%, followed by the S&P 500 (SPX) which fell 0.66%. The Dow Industrials ($DJI) fell by 0.29%, while the small-cap Russell 2000 index (RUT) closed only 0.03% lower. Bank stocks outperformed ahead of Friday when a number are set to report fourth-quarter earnings. Other winners Monday included stocks more sensitive to economic growth, like retailers and certain small-caps.

The benchmark 10-Year U.S. Treasury Yield also made gains: the TNX hit its highest level since March 19, 2020. Big tech weighed on markets. All five companies in the FAANG index closed Monday in the red. Like the major indices, the EV-maker Tesla Inc TSLA also ended a 2021 winning streak. The stock fell 7.8%, its worst day since September 23.

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