U.S. stock futures indicate a flat start on Wednesday following a retreat from record highs in the S&P 500 and Dow Jones Industrial Average on Tuesday. While a recovery in tech stocks could provide some support, a lack of significant economic drivers might create uncertainty, potentially leading to a range-bound market. Earnings reports and any pre-announcements could also influence trading. Crude oil prices remain weak due to ongoing geopolitical tensions, putting additional pressure on energy stocks.
Futures Performance:
- Nasdaq 100: +0.09%
- S&P 500: +0.02%
- Dow: -0.05%
- Russell 2000: +0.49%
In premarket trading on Wednesday, the SPDR S&P 500 ETF Trust (NYSE
) rose 0.07% to $580.16, and the Invesco QQQ ETF (NASDAQ
) increased by 0.10% to $491.36, according to Benzinga Pro data.
Insights from Tuesday’s Session:
Wall Street experienced a significant pullback from record highs on Tuesday, largely influenced by ASML Holdings N.V.’s (NASDAQ: ASML) disappointing revenue forecast, which impacted the AI hardware sector. Additionally, a drop in oil prices hurt energy stocks. Major indices opened mixed after a regional manufacturing survey revealed an unexpected contraction.
The S&P 500 and Nasdaq Composite began the day positively but quickly lost momentum following ASML’s early earnings report, ultimately closing lower. The Dow remained in the red throughout the day.
Index Performance:
- Nasdaq Composite: -1.01% (18,315.59)
- S&P 500 Index: -0.76% (5,815.26)
- Dow Industrials: -0.75% (42,740.42)
- Russell 2000: +0.05% (2,249.82)
Analyst Insights:
Ryan Detrick, Chief Market Strategist at Carson Group, noted that since the bull market has surpassed its second anniversary, there may be further gains ahead. “Historically, if a bull market lasts beyond its second year, it’s a strong indicator of continued growth,” he stated, referencing that five bull markets have made it this far, with the shortest lasting at least five years before concluding.
Upcoming Economic Data:
- The Labor Department is set to release its report on import and export prices for September at 8:30 a.m. EDT. Economists predict declines of 0.4% in export prices and 0.3% in import prices, following declines of 0.7% and 0.3% in August.
- J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT) surged over 7% in premarket trading after its quarterly results.
- NoVo Cure Limited (NASDAQ: NVCR) jumped nearly 30% following FDA approval of its lung cancer treatment.
- Companies reporting before the market opens include Abbott Laboratories (NYSE) and Morgan Stanley (NYSE).
- Cisco Systems, Inc. (NASDAQ: CSCO) gained over 1.5% after positive analyst feedback.
- Intel Corp. (NASDAQ: INTC) fell over 2% due to reports that Qualcomm, Inc. (NASDAQ: QCOM) will delay investment plans until after the U.S. elections.
- Companies scheduled to report after the close include Alcoa Corporation (NYSE: AA), CSX Corporation (NASDAQ: CSX), Discover Financial Services (NYSE: DFS), Kinder Morgan, Inc. (NYSE: KMI), and Steel Dynamics, Inc. (NASDAQ: STLD).
Commodities, Bonds, and Global Markets:
- Crude oil futures decreased, although losses were less severe than Tuesday’s, while gold futures showed slight gains. Bitcoin (CRYPTO: BTC) climbed above $67.5, and the yield on the 10-year U.S. Treasury note slipped to 4.012%.
- Most Asian markets declined, particularly in Japan, while China and Indonesia saw modest gains. The tech sell-off in Europe and the U.S. negatively impacted domestic market sentiment.
- Early trading in European stocks showed a downward trend, though the U.K. market was slightly up.
