U.S. stock futures drifted higher Tuesday ahead of earnings from more blue-chip companies and the start of the Federal Reserve’s two-day policy meeting.
Futures for the S&P 500 ticked up less than 0.1%, a day after the benchmark index ground higher to a record. Contracts for the technology-focused Nasdaq-100 rose 0.2%, while Dow Jones Industrial Average futures were flat.
A strong start to earnings season among U.S. companies and indications that the economy is rebounding have helped to lift stocks to a series of all-time highs. Still, some investors are cautious, pointing to risks stemming from elevated valuations, the potential for a jump in inflation and the raging epidemic in India.
“We’ve got a big week of tech earnings where valuations are probably a bit more stretched than in other areas,” said Stuart Rumble, investment director at Fidelity International.
Tech stocks have climbed in recent weeks, pushing the Nasdaq Composite Index to a record high on Monday for the first time since February. Mr. Rumble said he favors shares of banks and energy companies, economically-sensitive sectors that stand to benefit when coronavirus restrictions lift.