U.S. stock futures displayed a mixed performance on Thursday after the markets surged to new record highs.
Futures for the Dow Jones Industrial Average fell by 34 points, or less than 0.1%. S&P 500 futures remained unchanged, while contracts tied to the technology-focused Nasdaq 100 edged up by 0.1%.
On Wednesday, the S&P 500 and the Nasdaq reached new records, driven by a significant rise in Nvidia’s stock. Nvidia became the third company in history to surpass a market valuation of $3 trillion. The rally was supported by declining bond yields as traders heightened their expectations for interest-rate cuts from the Federal Reserve.
“Investors have been pricing in more rate cuts for six consecutive days,” stated Jim Reid, a strategist at Deutsche Bank. “The market outlook for 2024 has returned to its usual state.”
The S&P 500’s latest record marks the 25th instance this year, pushing its year-to-date gains to over 12%. The Nasdaq has climbed more than 14% since January 1.
Optimism regarding potential Federal Reserve cuts may have been influenced by the Bank of Canada, which became the first G7 nation to lower interest rates since the onset of the Covid-19 pandemic. The European Central Bank is also anticipated to reduce rates soon. Although this might seem divergent from the Federal Reserve’s stance, central banks typically adjust interest rates in similar directions over time.
Early Thursday, the yield on the 10-year Treasury bond was at 4.296%, down from over 4.6% a week earlier. Meanwhile, the two-year yield stood at 4.745%, having declined from just under 5% the previous week.
Futures Performance
E-Mini Dow(YM00): $38,868.00, down 16 points, -0.04%
E-Mini S&P 500(ES00): $5,369.25, up 3.25 points, +0.06%
E-Mini Nasdaq 100(NQ00): $19,105.25, up 31 points, +0.16%
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