ZM - Nasdaq S&P 500 Futures Grind Higher After Pause Bitcoin Tops $56K: Analyst Spotlights 'Big Takeaway' That Augurs Well For Market | Benzinga

U.S. stocks are poised for a potential rebound on Tuesday after facing concerns about valuations in the previous session. Early trading shows modest gains in major index futures, indicating continued market momentum. The day’s trading direction may be influenced by retail earnings reports, economic data releases, and a scheduled Fed speech. Traders may proceed cautiously ahead of key economic catalysts expected later in the week.

With February recording solid gains, markets could be aiming to close the month on a positive note. Investor sentiment leans towards risk-taking, as reflected in rallying cryptocurrencies, with Bitcoin (CRYPTO: BTC) surpassing the $56,500 mark.

Monday’s Market Recap:

The market, which had been overbought, opened higher but later relinquished its gains, displaying volatility throughout the session. Monday’s subdued sentiment occurred as traders paused for a breather following the recent record highs in the broader market.

All three major indices ended the session slightly lower, although small-cap stocks, which had been underperforming, managed to buck the downtrend and finish moderately higher.

Eight of the 11 S&P 500 sector classes closed lower for the day, primarily in the communication services, utility, and real estate sectors. Information technology (IT) stocks remained largely unchanged with a slight positive bias, while the consumer discretionary and energy sectors saw modest gains.

As February is shaping up to be a strong month, an analyst pointed to historical data that augurs well for the market.

Calling it a “big takeaway,” Carson Group’s Ryan Detrick noted that the market records an average gain of 19.87% on the years when both January and February record gains.