Stock futures hover near record highs amidst anticipation of more statements from Federal Reserve officials and pending Nvidia earnings.
Here’s a snapshot of how major stock-index futures are faring:
1. S&P 500 futures show a marginal decrease of 0.01%.
2. The Dow Jones Industrial Average futures are down by 0.01%.
3. Nasdaq 100 futures exhibit a slight decline of 0.13%.
On Monday, the Dow Jones Industrial Average closed down 197 points, or 0.49%, at 39,807. The S&P 500 inched up by 5 points, or 0.09%, closing at 5,308, while the Nasdaq Composite rose by 109 points, or 0.65%, finishing at 16,795.
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Early trading on Tuesday sees minimal movement in stock-index futures, indicating that major indices are poised to open near or at record levels.
The tech sector might face some pressure following Palo Alto Networks’ disappointing earnings report released late Monday. However, anticipation builds around Nvidia’s forthcoming results and guidance after Wednesday’s market close, prompting many traders to remain cautious.
After three consecutive days of gains, bond yields ease slightly, potentially bolstering stock futures as investors brace for a busy day of Federal Reserve speeches.
In contrast to recent sessions, commodity prices dip as profit-taking kicks in, with copper and gold stepping back from their record highs.
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Jim Reid, a strategist at Deutsche Bank, notes, “Investors have become more optimistic about a soft landing for the U.S. economy in the past few weeks, especially after April’s doubts, when the S&P 500 dropped by 4.16%.” He adds, “Thus far in May, the index has surged by +5.41%, with Nvidia’s remarkable +91.4% surge contributing a quarter to its year-to-date rise. Markets seem content that while inflation remains notably higher than anticipated at the beginning of 2024, it isn’t accelerating further.”
