Nasdaq and S&P 500 futures saw an increase on Thursday, with Nvidia continuing its upward trend. The chip leader surpassed Microsoft to become the world’s most valuable company with a market capitalization of $3.34 trillion. This rise, along with weaker-than-expected U.S. retail sales data, pushed both the S&P 500 and Nasdaq to new all-time highs on Tuesday.
Investors are now eagerly awaiting economic data and comments from Federal Reserve officials to confirm their expectations of rate cuts this year. Scheduled data releases include building permit numbers, housing starts in May, jobless claims for the week ending June 15, and the U.S. business index from the Philadelphia Federal Reserve. Additionally, comments from Federal Reserve officials such as Neel Kashkari, Thomas Barkin, and Mary Daly will be closely monitored for insights on interest rates.
Market indicators suggest a 66% chance of a rate cut by the U.S. central bank in September, according to CME Group’s FedWatch tool. Yields on two-year Treasury bonds, which indicate interest rate expectations, as well as those on the benchmark 10-year bond, rose between 3 and 4 basis points.
In premarket trading, Dow e-minis were up 22 points, S&P 500 e-minis were up 21.25 points, and Nasdaq 100 e-minis increased by 124 points. Along with Nvidia, other companies like Dell Technologies, Super Micro Computer, and Hewlett Packard Enterprise also saw positive movement in their stock prices.
However, Enphase Energy shares fell by 2.7% after JP Morgan lowered its price target. Additionally, Britain’s competition regulator is investigating Hewlett Packard Enterprise’s planned acquisition of Juniper Networks for potential competition concerns.
Overall, the market is focused on upcoming economic data and comments from Federal Reserve officials to gain more clarity on the likelihood of rate cuts this year. Nvidia’s strong performance has continued to drive market optimism, with investors closely monitoring key indicators to make informed decisions.
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