Stocks Are Set For A Pullback After Touching All-Time Highs On Monday
S&P 500 futures are losing ground in premarket trading in continuation of the market action seen in the last hours of yesterday’s trading session.
Market is worries about the fate of the new coronavirus aid package, the speed of vaccination and the continued uncertainty around the U.S. presidential election as Donald Trump prepares for legal battles.
Notably, Nasdaq futures are down by about 1.5% in premarket trading as leading tech stocks like Apple and Facebook remain under pressure. Yesterday’s laggards like Zoom and Netflix are also set to open lower, while Peloton investors can hope for some bounce at the start of the trading session.
The tech sector was leading the rebound of S&P 500 after the pandemic-related sell-off in March, and its recent weakness is worrisome for the bulls as it may take the broader market to lower levels.
Amazon Is Under Fire From The European Commission
Shares of Amazon are down by almost 2% in premarket trading as EU regulators accused the company of distorting competition in the online retail space.
While the EU decision on the case is expected in 2021, investors fear that the growing regulator attention to tech giants will ultimately hurt their profits or lead to break-ups of the leading tech companies.
The Big Tech is already facing increased scrutiny in the U.S., and EU has just indicated that it also plans to increase pressure on the companies whose might exceeds the power of many sovereign countries.
A potential sell-off in Big Tech stocks is one of the biggest threats for the market so investors will continue to monitor this story closely.
Oil Continues To Move Higher On Vaccine Hopes
Oil has managed to stay above the psychologically important $40 level and made an attempt to settle above the $41 levels as traders hope that an effective coronavirus vaccine will be a game-changer for the oil market.
The energy sector was a big winner yesterday, and energy-related stocks are also set to open higher today.
Shares of BP are set for an especially active trading session as they are already up by more than 7% in premarket trading.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire