Wall Street was set for a lower open on Tuesday after stocks hit a 13-month high in the previous session on expectations for prolonged low interest rates.
U.S. stocks reached fresh highs for the year on Monday after the Group of 20 nations pledged to keep aid flowing to the world economy, strengthening investor appetite for risk and boosting global stocks and commodities.
But the U.S. dollar, which has been moving inversely to stocks, fell to a 15-month low on the G20 agreement. In early trading on Tuesday, an index measuring the dollar against a basket of six currencies <.DXY> rose 0.16 percent.
A breather is expected after a strong rally yesterday, said Peter Boockvar, equity strategist at Miller Tabak & Co in New York. He added that the dollar was also likely to keep stocks under pressure.
S&P 500 futures dipped 4.2 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures fell 32 points, and Nasdaq 100 futures shed 3 points.
Shares of American International Group
Financial stocks were likely to rise after Europe's biggest bank, HSBC Holdings Plc
U.S.-listed shares of HSBC gained 3.3 percent to $60.22 in premarket trading.
Home builder Beazer Homes USA
Diversified manufacturer Tyco International Ltd
U.S. Senate Banking Committee Chairman Christopher Dodd is likely to release a long-awaited draft bill on financial regulation reform. In a departure from the Obama agenda, Dodd will call for centralizing bank supervision in one agency -- a contentious proposal that would pit him against other lawmakers and the administration, sources said.
(Editing by Padraic Cassidy)