Stock futures pull back from recent rally

Markets have shown concern as expanding coronavirus outbreaks dimmed hopes for a global recovery

U.S. equity futures are trading lower ahead of the Tuesday session on Wall Street.

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The major futures indexes are suggesting a decline of 1 percent.

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Markets have shown concern as expanding coronavirus outbreaks dimmed hopes for a global recovery, despite the recent surge in tech shares that pushed the Nasdaq composite to another record high.

Profit-taking set in quickly on Tuesday, erasing much of an initial rise for regional benchmarks that tracked Wall Street's rally.

In Asian markets, Japan's Nikkei dropped 0.4 percent, Hong Kong's Hang Seng shed 1.4 percent, while China's Shanghai Composite gained 0.4 percent.

In Europe, London's FTSE fell 1.3 percent, Germany's DAX declined 1.1 percent and France's CAC traded 0.9 percent lower.

On Monday, the S&P 500 rose 1.6 percent, clawing back to within 6.1 percent of its record set in February.

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The strength of Apple, Amazon and other tech-oriented titans helped lift the Nasdaq composite 2.2 percent to a record high of 10,433.65.

The Dow Jones Industrial Average rose 1.8 percent.

TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES27976.84+289.93+1.05%
SP500S&P 5003380.35+46.66+1.40%
I:COMPNASDAQ COMPOSITE INDEX11012.238958+229.42+2.13%

The worst-case scenario for markets is that governments resume lockdowns implemented during the spring and choke off the budding economic recovery.

A report released Monday morning showed that U.S. services industries snapped back to growth in June with much stronger than economists expected.

Some deal making also helped to lift markets.

Berkshire Hathaway, led by famed bargain hunter Warren Buffett, has agreed to buy Dominion Energy’s operations for moving and storing natural gas. Berkshire Hathaway will pay roughly $4 billion in cash under the deal, as well as assume $5.7 billion in debt.

Uber rose 6 percent after it said it will buy food-delivery business Postmates for $2.65 billion in stock.

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Benchmark U.S. crude oil lost 62 cents to $40.01 a barrel. It fell 2 cents to $40.63 a barrel Monday. Brent crude oil for September delivery fell 54 cents to $42.56 a barrel.

The Associated Press contributed to this article.