U.S. stock index futures were flat early on Wednesday after the Dow and S&P 500 closed at record highs following the Senate passing the $1 trillion infrastructure bill.
Futures contracts tied to the Dow Jones Industrial Average edged slightly lower. S&P 500 futures and Nasdaq 100 futures were flat.
The Dow gained 162.82 points, or 0.46%, while the S&P 500 advanced 0.1% during regular trading. Both hit all-time intraday highs while also closing at records. The Nasdaq Composite slid 0.49%, registering its second negative session in the last three. The dip came as Treasury yields advanced, weighing on growth-oriented areas of the market.
Cyclical areas of the market got a boost during trading, helped by both the bill’s passage and the rise in rates. The energy, materials, industrials and financials sectors all advanced more than 1%.
The march to record highs for stocks comes despite Covid case numbers rising in the U.S. and around the world.
“Widespread vaccine distribution and distancing measures have helped limit the variant’s impact, but we could still see some drag on economic growth as some restrictions are reintroduced and consumers potentially become more cautious,” said Barry Gilbert, asset allocation strategist at LPL Financial. “While we may see an increase in market volatility due to the Delta variant, we believe the S&P 500 is still likely to see more gains through the end of the year,” he added.
