7:27 am: Airlines, cruise lines drop premarket
Investors shifted away from stocks that are expected to benefit from the economy reopening on Tuesday. Airlines and cruise lines have been on a tear as market participants bet on a return in travel demand; however, the equities fell in premarket trading on Tuesday. American Airlines fell 7% before the bell. Delta Air Lines and Alaska Air Group both dropped more than 4%. United Airlines and Southwest both fell about 3.9%.
Cruise operators also ticked lower in premarket trading on Tuesday. Carnival Corp. and Royal Caribbean fell more than 4% and Norwegian Cruise Lines dropped about 3.8%. —Fitzgerald
7:00 am: Equities’ rally hits pause
U.S. equity futures fell on Tuesday as investors pulled back on riskier assets after a major comeback for stocks from the coronavirus market rout. The Dow Jones Industrial Average futures fell 320 points and the S&P 500 futures fell about 26 points. Nasdaq Composite futures indicated a drop of 41 points at the open. Reopening plays — airlines, cruise lines and retailers — ticked lower in premarket trading.
Investors are awaiting the U.S. Federal Reserve’s two-day monetary policy meeting starting later in the day on Tuesday.
On Monday, all three major averages registered sharp gains. Most notably, the S&P 500 went positive for the year. The Nasdaq Composite notched a new record high. The Dow Jones Industrial Average jumped more than 450 points.
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