Global stocks hit record highs on Tuesday, supported by strong economic data from China and the United States, although US equity futures slipped as concern China is curtailing loan growth tempered optimism stoked by the U.S. economic rebound. Nasdaq underperformed as investors locked in some gains on renewed reflation concerns hopes while currency and bond markets paused for breath after a month of rapid gains in the dollar and Treasury yields. At 715 a.m. ET, Dow E-minis were down 41 points, or 0.11%, S&P 500 E-minis were down 8 points, or 0.20% and Nasdaq 100 E-minis were down 11.5 points, or 0.23%.
Apple stock dipped after a rare downgrade from Morgan Stanley cut the price target on the world’s largest company from $164 to $156, citing multiple compression (it kept the Overweight target).
In the past few days, tech and other growth stocks had awakened after lagging in recent weeks behind value stocks expected to outperform as the economy emerges from the coronavirus pandemic. The tech-heavy Nasdaq is now about 3% from its February record high after falling as much as 12% from that level.
Stocks tied to the Archegos collapse fell in pre-market trading as Credit Suisse hit the market with block trades that totaled more than $2 billion. 34 million shares in ViacomCBS were offered on Monday, 14 million shares of Vipshop and 11 million shares of Farfetch. Still, that’s only a fraction of the size traded by banks at the end of March. ViacomCBS slipped 2.2% and Vipshop Holdings dropped 2.1% while Farfetch declined 2.1% after the Swiss bank unloaded shares.