Stock futures fall slightly in overnight trading as markets close at record levels; Chinese stocks beaten down but look attractive

 Stock futures dipped in overnight trading Sunday after a rush of broad-based late buying pushed the S&P 500 to a record high in the final minutes of the previous session.

Futures on the Dow Jones Industrial Average fell 110 points. S&P 500 futures and Nasdaq 100 futures both traded 0.4% lower.

On Friday, all three major benchmarks rallied to their session highs into the close with the blue-chip Dow closing about 450 points higher. The S&P 500 eventually climbed 1.7% to hit a record closing high. The Nasdaq Composite wiped out a 0.8% loss and ended Friday 1.2% higher.

Traders are bracing for heightened volatility during this holiday-shortened week with quarter-end rebalancing among pension funds and other big investors. The recent swift advance in bond yields could set up money managers for big adjustments in their portfolios.

The Dow and the S&P 500 have risen 6.9% and 4.3%, respectively, so far in March. The tech-heavy Nasdaq, however, has dipped 0.4% this month as some investors jumped high-flying technology names amid rising yields.

Investors are awaiting updates from President Joe Biden about his infrastructure plan which could cost north of $3 trillion. The president is expected to unveil his plan when he travels to Pittsburgh on Wednesday. White House press secretary Jen Psaki said Sunday.

 The U.S. Administration plans to roll out two packages in the coming months, the first covering infrastructure and the second covering health and family care.

The stock market is closed for the Good Friday holiday, but the March jobs report is still slated for release that morning. Economists expect 630,000 jobs were added in March, and the unemployment rate fell to 6% from 6.2%, according to Dow Jones.

Last week saw a wild swing in Chinese stocks as they fell sharply after several weeks in correction mode.

A trader who participated in some of the wild trading in Chinese internet stocks on Friday confirmed that the primary cause of the selling in Chinese stocks was that a fund, Archegos Capital Management, was forced out of its positions.

Goldman Sachs, Morgan Stanley, Credit Suisse, and Deutsche Bank all forced Archegos to liquidate many of the China internet names through unregistered trades, according to the trader.

The massive selloff in U.S.-listed shares of Chinese technology companies isn’t linked to their fundamentals and makes for a bigger buying opportunity, according to Citigroup Inc.

The brokerage reiterated buy ratings on Baidu Inc., Tencent Music Entertainment Group, and Vipshop Holdings Ltd. following what it called an “unfortunate dislocation” of their share prices

The block trades come as Chinese tech shares were already reeling from higher U.S. Treasury yields and mounting regulatory pressure.