US stock futures fell in overnight trading on Tuesday, despite recent strength that pushed major averages to record highs.
Dow futures fell around 150 points. S&P 500 futures fell 0.35% and Nasdaq 100 futures lost 0.2%.
Dow component Salesforce announced that it will acquire the messaging platform Slack for $ 27.7 billion after the bell on Tuesday. The Slack deal is the cloud software company's biggest deal ever.
The main averages fell on Tuesday, December 1st, adding to the strong month-over-month gains. The Dow climbed 185 points, helped by Apple shares rising 3%. The average of 30 stocks hit an intraday record on Tuesday.
The S&P 500 rose 1.13% to close at a record high. The Nasdaq Composite also hit a new record, closing 1.3% as the mega-cap tech stocks all closed in the green.
"The start of Covid-19 vaccinations is getting closer and bringing 'Buy on Any Dip' to the fore," said Jim Paulsen, Chief Investment Strategist at Leuthold Group, to CNBC. "After a weaker Monday session, Tuesday set investors looking for a way to add risk. Activity was further heightened today by rising bond yields coupled with a stronger stock market, adding to the optimism that despite recent economic momentum Covid-19 cascade could stay healthy in winter. "
Sentiment was lifted after a group of lawmakers unveiled a $ 908 billion stimulus plan. However, Senate majority leader Mitch McConnell turned down the proposal later that day. Nevertheless, investors are hoping for a second stimulus package in the lame duck phase for Congress.
Stocks have seen their best month in more than three decades. The Dow rose more than 11% in November, the best monthly performance since January 1987. The S&P 500 and Nasdaq Composite rose 10.8% and 11.8%, respectively, as they were the strongest monthly advances recorded since April.
The November rally was supported by positive vaccine news from several pharmaceutical companies. Developments drove investors into stocks that are dependent on a strong economic recovery.
Despite the positive vaccine data, Federal Reserve Chairman Jerome Powell described the economic outlook as "extremely uncertain" on Tuesday as he and Treasury Secretary Steven Mnuchin addressed Congress this week as part of mandatory updates to CARES funding . Mnuchin asked Congress to allocate $ 300 billion for restaurants over the winter months.
ADP's private salary data will be released on Wednesday at 8:15 a.m. ET. Economists polled by Dow Jones expect 475,000 private jobs to be created in November, compared with 365,000 in October.
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