Markets rise, pullback “can’t be ruled out”

Markets were mostly higher on Tuesday.

The S&P 500 rose 0.8 percent to a record high and the STOXX Europe 600 rose 0.2 percent. However, the Nikkei 225 fell 0.5 percent.

Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research, said that “valuations are fairly high” and expects “the market to be mostly sideways with slightly elevated volatility”.

“The delta variant of the virus is now rapidly spreading in the U.S. and a modest pullback in activity can’t be ruled out,” Solita Marcelli, CIO Americas at UBS, said in a note.