Dow Jones Today: Stock Futures Inch Lower as S&P 500 Near Record High; Nvidia Extends Rally
Stock futures are pointing to a slightly lower open for major U.S. indexes on Wednesday as investors await key economic data and earnings releases in the coming days.
Futures tied to the Dow Jones Industrial Average, S&P 500 and Nasdaq 100 were each off 0.1% in recent trading. Major indexes closed sharply higher on Tuesday, rebounding from a steep selloff to start the week, as chipmaker Nvidia (NVDA) led a rally in technology stocks and oil prices fell sharply. The S&P 500 is just 16 points away from a new record high.
Nvidia, which is nearing its all-time high, was up 1% in premarket trading Wednesday amid continued investor optimism about surging demand for the company’s products amid the AI boom.
Other large-cap technology stocks were mixed Wednesday morning. Microsoft (MSFT), Amazon (AMZN) and Meta Platforms (META) were gaining ground, while Apple (AAPL), Alphabet (GOOGL) and Broadcom (AVGO) were slightly lower ahead of the bell.
The economic data calendar is light on Wednesday but picks up significantly in the coming days with the release of closely watched inflation data, weekly jobless claims and the latest reading on consumer sentiment. Investors will be monitoring comments from a slew of Federal Reserve officials who are scheduled to speak today.
Market participants are keeping close tabs on the data points and remarks from Fed officials as they seek further confirmation that the economy is on sound footing, while also looking for clues about how aggressive the central bank will be as it cuts interest rates. The Fed cut its benchmark lending rate last month for the first time in four years and indicated that more cuts are coming, though the pace and depth of those cuts depends on incoming economic data.
The yield on 10-year Treasurys, which is sensitive to expectations around where rates are headed, was little changed Wednesday morning at around 4.04%. The yield jumped above 4% on Monday for the first time in two months as market participants scaled back their expectations for big rate cuts in the coming months, after last week’s stronger-than-expected jobs report.
Crude oil futures were down about 0.5%, after falling more than 4% on Tuesday, as concerns about Middle East tensions have moderated, at least temporarily.
Gold futures were little changed at around $2,640 an ounce, while bitcoin was also holding steady around $62,000.