US pre-open: Futures have stocks adding to record-setting rally

Wall Street futures were in the green ahead of the bell on Tuesday as major indices look set to raise record highs even further.

As of 1235 GMT, Dow Jones futures were up 0.63%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.55% and 0.51% firmer, respectively.

The Dow closed 27.70 points higher on Friday, with traders taking a break on Monday in observance of George Washington's Birthday.

In focus on Tuesday, the Cboe Volatility Index, considered to be the Street's best fear gauge, fell to 19.97 on Friday, the first breach of the 20-point threshold since the Covid-19 pandemic began in 2020, a move seen by some as a big "risk on" signal, one which could potentially trigger buying from algorithmic traders.

Stimulus expectations and the rollout of Covid-19 vaccines across the nation were also in focus.

SpreadEx's Connor Campbell said: "After Monday's President's Day holiday, the Dow Jones is back in the saddle this Tuesday – and it’s going record-chasing. The index is looking to cross 31,650 for the first time as Joe Biden continues to push forwards with his $1.9trn American Rescue Plan.

"Now that Donald Trump's 2nd impeachment is dealt with, Congress can firmly focus on the stimulus package, which is potentially on track to be in place by mid-March."

On the macro front, February's New York Empire State manufacturing index will be published at 1330 GMT, while data on December's foreign bond investments was slated for release at 2100 GMT.

In the corporate space, CVS Health beat on both profit and revenue expectations, partly due to having administered more than 3.0m Covid-19 vaccinations, while restaurant chain Dennys will report after the close.