(RTTNews) – Following the pullback seen in the previous session, U.S. stocks are likely to see further downside in early trading on Tuesday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 132 points.
The downward momentum on Wall Street comes as traders appear poised to continue cashing in on recent strength in the markets.
Profit taking also contributed to the weakness on Monday after the Dow and the S&P 500 ended last Friday’s trading at new record closing highs.
A new wave of coronavirus infections overseas may also weigh on the markets amid concerns about new restrictions and the impact on the global economy.
Overall trading activity may be somewhat subdued, however, with another quiet day on the U.S. economic front keeping some traders on the sidelines.
Upbeat earnings news from companies like Procter & Gamble (PG), Johnson & Johnson (JNJ) and Travelers (TRV) may also help limit any downside.
U.S. stocks closed mostly lower on Monday, pulling back off the historic highs set last Friday, as investors largely stayed cautious amid a lack of triggers and looked ahead to more earnings news and economic data.
Further, geopolitical concerns and worries about spikes in coronavirus cases in several countries raised uncertainty about the pace of global the economic recovery, contributing to the lackluster movements in the market.
The major averages all ended in negative territory. The Dow ended down 123.04 points or 0.4 percent at 34,077.63. The S&P 500 closed lower by 22.21 points or 0.5 percent at 4,163.26 and the tech-heavy Nasdaq ended down 137.58 points or 1 percent at 13,914.77.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan’s Nikkei 225 Index plunged by 2 percent, while China’s Shanghai Composite Index edged down by 0.2 percent.
The major European markets have also moved to the downside on the day. While the French CAC 40 Index has tumbled by 1.5 percent, the U.K.’s FTSE 100 Index is down by 1.2 percent and the German DAX Index is down by 0.9 percent.
In commodities trading, crude oil futures are climbing $0.38 to $63.76 a barrel after rising $0.25 to $63.38 barrel on Monday. Meanwhile, after sliding $9.60 to $1,770.60 an ounce in the previous session, gold futures are inching up $2.10 to $1,772.70 an ounce.
On the currency front, the U.S. dollar is trading at 108.43 yen compared to the 108.17 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.2043 compared to yesterday’s $1.2037.