How are stock-index futures trading:
S&P 500 futures are up 0.08%.
Dow Jones Industrial Average futures are gaining 0.06%.
Nasdaq 100 futures are adding 0.15%.
On Monday, the Dow Jones Industrial Average rose 65 points, or 0.16%, to 41241, the S&P 500 declined 18 points, or 0.32%, to 5617, and the Nasdaq Composite dropped 152 points, or 0.85%, to 17726.
Early futures action shows the Dow Jones Industrial Average will hold the new record high reached on Monday, as the rally from the early August sell-off consolidates.
The next big hurdle for the market will be the earnings and guidance from chip behemoth Nvidia, due after the market closes on Wednesday.
Stocks are being underpinned by benchmark Treasury yields hovering near their lows of the year as investors become more certain that the Federal Reserve will begin a cycle of interest rate reductions in mid September.
The pace of those cuts will likely depend on economic data from here on, particular the PCE inflation report this coming Friday, and the nonfarm payrolls data a week later.
Stephen Innes, managing partner at SPI Asset Management, welcomed evidence that the breadth of the stock market was improving as hopes for lower borrowing costs encourages investors to seek opportunities away from the big technology plays.
“As the tech giants take a breather, small-caps have seized the moment, basking in their time in the spotlight. It’s a healthy sign that the market’s not just a one-trick pony, and there’s still plenty of opportunity across the board,” says Innes.
But he warns: “As we approach Nvidia’s highly anticipated earnings report—arguably the most significant of 2024—tech investors are understandably on edge.”