S&P 500 futures fall in wake of Brussels attacks
LONDON — stock futures fellafter bomb explosions in Brussels jolted markets, signaling an end to a four-day winning streak for the Standard & Poor’s 500 Index.
Carnival Corp., American Airlines Group Inc., Delta Air Lines Inc., and Expedia Inc. led travel-related stocks lower in premarket trading, falling at least 2.6 percent each. Southwest Airlines Co. and Priceline Group Inc. also fell. Flights in and out of Brussels were canceled and security precautions were stepped up at travel hubs around Europe after blasts in the Belgian capital.
Contracts on the S&P 500 expiring in June retreated 0.3 percent to 2,036 at 7:40 a.m. in New York. Dow Jones Industrial Average futures lost 39 points to 17,489, a sign the gauge will snap seven straight days of gains, it’s longest streak of increases since October.
“The attack is an external shock, and its impact on the rebound rally will depend on if it is followed by similar incidents,” said Christian Gattiker, head of research at Julius Baer Group Ltd. in Zurich. “Its been a rollercoaster in the first quarter.”
Bank of America Corp. said Tuesday that clients were net sellers of $1.4 billion of US stocks in an eighth consecutive week of selling, the longest client selling streak in five years. That suggests investors still doubt the sustainability of the rally, strategists at the firm said.
Declines on Tuesday would disrupt a five-week rally bolstered by improving economic data, rising crude prices and optimism that central banks around the world will continue to support growth. The S&P 500 has erased the fallout from a tumultuous start to 2016, rebounding 12 percent since its February low and turning positive for the year last week. The index is among the top three best-performers of the year among developed-market benchmarks tracked by Bloomberg.
A report Tuesday is forecast to show house prices in the US for January climbed, while a separate measure is expected to show a gain in manufacturing activity.