Stock futures are on the rise following the cessation of a six-day losing streak for the S&P 500, propelled by a resurgence in technology shares. The optimism is further fueled by anticipation surrounding forthcoming earnings reports and economic indicators set to unfold throughout the week.
As of Tuesday morning, Dow Jones Industrial Average futures and S&P 500 futures each experienced a 0.1% uptick, paralleled by a similar increase of 0.1% in Nasdaq 100 futures.
Monday witnessed a triumphant session for investors, with the Dow concluding 0.67% higher. Concurrently, the S&P 500 surged by 0.87%, while the Nasdaq Composite saw a notable ascent of 1.11%. These gains mark a cessation to the respective six-day downward trajectories of both the S&P 500 and Nasdaq.
The market shift can be attributed to investors seizing opportunities in the technology sector following recent declines in prominent entities such as Nvidia, which had faced setbacks amidst concerns over inflationary pressures and the specter of heightened interest rates. Notably, information technology emerged as the top-performing sector within the S&P 500 on Monday, with Nvidia recording a surge of over 4% during the trading session. This rebound follows a setback of nearly 14% for the chip giant during the previous week, marking its most significant weekly decline since September 2022.
Ayako Yoshioka, senior portfolio manager at Wealth Enhancement Group, commented on this market fluctuation, stating, “A short-term bounce in the market makes a lot of sense here in that, you know, we had a rough week and a half plus, and so now we’re seeing a little bit of a rebound as we go into tech,” during an interview with CNBC’s “Closing Bell” on Monday.
In addition to the market dynamics, traders are eagerly awaiting the release of earnings reports from industry behemoths throughout the week. Tesla, which has faced challenges this year with a decline of over 40% in its stock value, will kick off the series of mega-cap earnings announcements. Concerns about heightened competition from Chinese rivals have contributed to Tesla’s subdued performance. Meta Platforms is scheduled to unveil its results on Wednesday afternoon, followed by Alphabet and Microsoft on Thursday.
Yoshioka emphasized the significance of these earnings releases, stating, “I think those earnings from Microsoft and Alphabet and Meta are going to be really important to determine whether or not that tech trade can continue to take the market higher.”
Furthermore, investors will closely monitor the release of new home sales data on Tuesday for insights into the economic landscape.
