"Futures are trading mixed this morning after a dreadful day across Wall Street, with all major indices closing lower except the Russell 2000. What began in late December and has gained considerable traction recently is the narrative of a broad rotation out of technology stocks. For the last three years, technology stocks, led by the Magnificent 7, have marched the S&P 500 to three consecutive years of double-digit gains."
"Yields were mixed across the treasury curve following a rough Monday that got February off on the wrong foot. Buyers came in on Tuesday for bonds with maturities of 5 to 30 years, while sellers focused on T-bills. Despite robust economic data, the ISM Manufacturing Purchasing Managers' Index (PMI) for January 2026 came in at 52.6, indicating expansion and exceeding expectations, suggesting the economy might not require rapid rate cuts. Bonds still traded higher into the close."
"Prices were higher across the energy complex on Tuesday as geopolitical tensions returned after an incident involving an Iranian drone reignited concerns about a potential Strait of Hormuz closure. Traders were also very optimistic about the new trade deal with India, which could drive demand. Brent Crude finished the day at $67.89, up 2.4%, while West Texas Intermediate closed at $63.80, up 2.40%. Natural gas also had a solid day, closing 4.17% higher at $3.37."
Futures are mixed following a difficult session that saw most major indices close lower while the Russell 2000 rose. A rotation out of technology stocks, led previously by the Magnificent 7, has accelerated since late December and is expected to continue through the first quarter. The Nasdaq dropped 1.43% to 23,255, the Dow fell 0.43% to 49,230, and the S&P 500 declined 0.84% to 6,917; the Russell 2000 gained 0.31% to 2,648. Treasury yields were mixed as buyers targeted 5- to 30-year maturities; the 30-year closed at 4.90% and the 10-year at 4.27%. The ISM Manufacturing PMI for January 2026 came in at 52.6. Energy prices rose amid renewed Middle East tensions and optimism about a trade deal with India, with Brent at $67.89 and WTI at $63.80; natural gas closed at $3.37. Gold continued to rebound from a sharp sell-off.
Read at 24/7 Wall St.
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