On Tuesday, Nasdaq futures dropped as the selloff of tech stocks continues. The Dow gained as investors sought profits from stocks that would prosper from corporate tax cuts.
Over the weekend, the Senate approved its version of tax code overhaul in a 51-49 vote. Discussion between the Senate and the House will likely begin next week. Once both bills are reconciled, the subsequent bill may reduce corporate tax rates from 35 percent to 20 percent.
The Dow Jones Industrial Average reached a record high on Monday, with banks and retailers surging and technology companies falling as investors realigned their portfolios in hopes of benefiting from expected corporate tax cuts.
The S&P 500 closed with a loss prior to reaching an intra-day all-time high, while the technology-heavy Nasdaq fell 1.05 percent. The S&P tech sector is the top performing sector this year, outperforming the broader index. Yet, investors are showing concerns over sky-high stretched valuations. Shares of major tech companies such as Facebook, Apple, Microsoft and Alphabet were all down in premarket trading roughly 0.5 percent.
On Tuesday, oil prices dropped before U.S. crude inventories data, as the market considered the impact of rising U.S. crude output compared to the most recent deal between OPEC and other crude producers to extend output cuts.
The U.S. Commerce Department is scheduled to release a report on trade deficit data to at 8:30 a.m. ET. The data that is expected to show an increase to $47.5 billion in October from $43.5 billion in September. The Institute for Supply Management is forecast to report at 10 a.m. ET that its non-manufacturing index fell to 59.0 in November from 60.1 in October.
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The U.S. Senate Banking Committee shall vote on the nomination of Jerome Powell to become chairman of the Federal Reserve Bank of Governors.