Traders work on the trading floor of the New York Stock Exchange.
US stock index futures rose during overnight trading after major averages closed Tuesday's session in the red.
Futures contracts linked to the Dow Jones Industrial Average gained 51 points, or 0.15%. S&P 500 futures rose 0.13% while Nasdaq 100 futures rose 0.18%.
The major averages retreated from record highs and closed in negative territory during regular trading. The Dow lost 97 points, or 0.3%, breaking a two-day winning streak. The S&P hit a record high but pulled back during afternoon trading, eventually closing 0.1% lower on its first negative session in four years. The Nasdaq Composite was down 0.05% for a three-day winning streak.
"There are many reasons to look forward to the months ahead and we are generally optimistic about this year," said Lindsey Bell, chief investment strategist at Ally Invest. "Stock momentum is undoubtedly strong. But the market may be ready to take a breather as investors digest all the good news, determine how much of it is priced in, and weigh it against uncertain risks like inflation," she added.
Strong economic data – including the March job report, which significantly exceeded expectations – fueled the rise in stocks in recent sessions. All three major averages lose their fourth straight quarter as Covid-19 economic recovery accelerates.
The International Monetary Fund on Tuesday raised its global economic growth outlook for 2021 to 6%, compared to its January forecast of 5.5%. The organization said that "a way out of this health and economic crisis is becoming increasingly visible". However, the IMF warned of "formidable challenges" given the uneven pace of vaccine adoption around the world.
"We still see stocks as attractive from a positioning perspective," said Keith Lerner, Truist's chief market strategist. "While we expect periodic setbacks, US stocks have risen 85% of the time during the economic expansion and valuations remain attractive relative to fixed income."
Rising yields have scared investors lately, triggering a rotation of growth into value-driven areas of the market. On Tuesday, the 10-year government bond yield fell 7 basis points to 1.65%.
The Federal Open Market Committee will release the minutes of its March meeting on Wednesday at which the central bank decided to keep interest rates unchanged. The log could give investors an indication of when the Fed might raise interest rates.