Nasdaq futures were the top performers on Tuesday, with AI-linked stocks like Nvidia rebounding after a recent downturn. Investors are closely watching for signals on monetary policy from the Federal Reserve and upcoming economic data. Nvidia, which had lost significant market value in recent days, saw a 2.5% increase in premarket trading. Other companies like Micron Technology, Broadcom, Qualcomm, and Super Micro Computer also experienced gains.
On Monday, the Nasdaq experienced a sharp drop as investors shifted their focus from AI stocks to other sectors, causing tech-heavy indexes to underperform. In contrast, sectors like utilities and energy saw increased interest, leading to the Dow reaching a one-month high. However, futures tracking the blue-chip index fell on Tuesday.
Concerns are rising about the sustainability of the stock market’s strength, especially as growth stocks like those in the technology sector have been driving the S&P 500 and Nasdaq to record highs. The Dow, which is more value-focused, lags behind, prompting questions about the future direction of US indices.
Key economic data to watch for this week includes the PCE price index, considered the Fed’s preferred inflation gauge, and consumer confidence data. Federal Reserve officials have been emphasizing the need for a stable policy rate due to persistently high inflation levels. Market participants are anticipating a possible interest rate cut in September and are considering further cuts by the end of the year.
In addition to economic data, investors are also monitoring corporate earnings reports. Companies like cruise operator Carnival Corp and package delivery giant FedEx are expected to release their quarterly results. As of early trading, Dow e-minis were slightly down, while S&P 500 e-minis and Nasdaq 100 e-minis were showing gains.
Boeing’s offer to acquire Spirit AeroSystems in a deal financed primarily by shares led to a decline in Spirit AeroSystems’ stock. Trump Media & Technology Group saw a significant increase, building on the momentum from the previous day’s gains related to the cash exercise of warrants.
Overall, the market remains volatile, with investors closely monitoring developments related to monetary policy and economic data. As uncertainty continues, the tech sector’s performance and potential interest rate cuts will be key factors influencing market movements.
Article Source
https://finance.yahoo.com/news/nasdaq-futures-rise-nvidia-stabilizes-102501520.html