Stock futures edge lower, steadying after rally

Stock futures opened slightly lower Monday evening following another strong session of gains.

Stocks earlier powered higher for a fifth straight session, with the Nasdaq Composite rising to a record high. Big tech stocks led advances, and Amazon (AMZN) rocketed above $3,000 per share for the first time ever. Other tech names including Apple, Microsoft, Netflix, Nvidia and Adobe also rose to record levels.

The jump came after economic data Monday morning showed a much stronger than expected rebound in US service sector activity in June, underscoring a recovery in the industries hardest hit by the pandemic. Airlines and cruise stocks rose during the regular session, but pared some gains as overnight trading kicked off.

Earlier in the day, an editorial in China’s state-run media outlet the Securities Journal suggested the country should prioritize fostering a “healthy” bull market after the pandemic, sending global equities higher and US stocks tracking these advances.

Still, an eruption of cases in the South and West continued over the holiday weekend and into this week, leaving the risk that ensuing business re-closures could jeopardize the pace of the recovery. The mayor of Miami-Dade in Florida said he intends to close restaurants and gyms again on Wednesday. Cases throughout Florida rose 3.2% on a one-day basis as of Monday, coming in below the state’s seven-day average increase of 5.1%, but holding at a high level relative to other regions. Arizona, another new hot spot, reported a 3.4% one-day increase in cases, which was also below its seven-day average.

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