Investors on Wall Street are holding steady as they anticipate the Federal Reserve’s upcoming policy decision, with U.S. stock futures showing minimal movement following a positive trading day for the major indices.
As of Tuesday night, Dow Jones Industrial Average futures saw a slight decline, while S&P 500 futures dipped by 0.12%, and Nasdaq 100 futures saw a marginal increase of 0.17%.
Yesterday’s trading session saw gains across the board, with the Dow climbing 320 points, or 0.8%, marking its most substantial single-day increase since February 22nd. The S&P 500 also saw a rise of approximately 0.6%, and the Nasdaq Composite edged up by around 0.4%.
Concerns have arisen among investors regarding recent weakness in the technology sector, prompting speculation about the potential slowdown of the artificial intelligence rally, while other segments of the market show signs of strength. Notably, on Tuesday, communication services, which includes companies like Alphabet and Meta Platforms, were the only sector in the S&P 500 to incur losses, with energy and utilities stocks leading the broader index.
Semiconductor stocks also experienced underperformance, evidenced by the VanEck Semiconductor ETF (SMH) slipping by 0.2%. Notable decliners included shares of bitcoin proxy MicroStrategy and Super Micro Computer.
Commenting on the market dynamics, Liz Ann Sonders, chief investment strategist at Charles Schwab, remarked on CNBC’s “Closing Bell” that the rotation and churn occurring beneath the surface are not necessarily negative. She suggested that this movement reflects economic resilience, indicating a more cyclical bias in the sectors that have been performing well.
