Stock market news live updates: Futures push higher after Delta-variant selloff hammers Wall Street

Javier E. David
·Editor focused on markets and the economy
·3 min read

Stock market futures rose early Tuesday, indicating Wall Street was set to recoup some of the previous session's steep losses, as rising COVID-19 infections reassert themselves and ricochet across global markets.

On Monday, major benchmarks suffered their worst declines of 2021, overwhelming quarterly earnings that have almost uniformly reflected a strong rebound. The rising case count driven by the Delta variant — a more communicable form of COVID-19 — pushed the Nasdaq and S&P 500 to their biggest drop in nearly two months, and sent benchmark Treasury yields to their largest decline in over 3 months as investors sought shelter from the uncertainty. The Dow's point drop was its worst since October 2020.

The darkening mood overshadowed anticipation about retail trading upstart Robinhood, which early Monday filed its prospectus to go public at a valuation of $35 billion. Jitters over the Delta variant even managed to outweigh market expectations for this week's batch of earnings, which will include industry leaders like Netflix (NFLX) and Johnson & Johnson (JNJ). According to data from Bank of America, second quarter earnings per share are tracking 3.5% above consensus, led by financials, with raised guidance and better-than-expected topline results also strong.

Still, the ongoing pandemic is proving increasingly difficult to control, even with a mass vaccination effort underway. Investors are fearful that soaring infection rates may trigger new round of restrictions, the likes of which brought the economy to a screeching halt last year. Already in Los Angeles, authorities have re-instituted indoor masking requirements, a precursor to what could lie ahead. 

Analysts are cautiously monitoring key sectors that may suffer the most if rising infection rates spark new restrictions. Citi Global Wealth’s David Bailin said rising coronavirus cases may not impact industrials much. 

However, "When it comes to leisure and services, a significant amount. And when it comes to global reopening, also a significant amount," he told Yahoo Finance Live. "That’s what the market’s digesting.”

In Europe, bourses rebounded in the wake of Monday's "Freedom Day" sell-off in the United Kingdom, which ironically began with the Prime Minister and the Chancellor having to isolate after being notified they came into contact with someone who was COVID-19 positive. 

The incident refocused attention on the Delta variant, which is driving a surge of new cases across the U.K. and the U.S., and sent the safe-haven 10-year Treasury bond yield (TNX) to its lowest levels since early March. 

Against the backdrop of surging demand and prices, Corporate America continues to surprise investors to the upside with second-quarter earnings results. About 8% of S&P 500 companies have reported results so far, mostly banks. Of those reporting, 85% have topped estimates, according to FactSet data.

After Tuesday's trading session, investors will absorb Netflix's Q2 earnings report. The streaming titan has been racking up Hollywood accolades, yet its stock has been treading water amid investor concerns about slowing growth as lockdowns ease. 

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7:15 a.m. ET Tusday: Stock futures rally

Here were the main moves in markets as of 7:15 a.m:

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6:20 p.m. ET Monday evening: Stock futures rise

Here were the main moves in markets, as of 6:20 p.m. ET:

  • Dow futures (YM=F): 33,999.00+160.00 (+0.47%)

  • Nasdaq futures (NQ=F): 14,617.75+77.00 (+0.53%)

  • S&P 500 futures (ES=F): 4,269.25+18.00 (+0.42%)

Javier David is an editor for Yahoo Finance. Follow Javier on Twitter: @TeflonGeek

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