In the morning hours on Tuesday, U.S. stock futures experienced a decline following a positive start to the week. Dow Jones Industrial Average futures dropped by 0.21%, S&P 500 futures dipped 0.22%, and Nasdaq 100 futures were down 0.3%.
The previous trading session saw a robust performance in equities, with the S&P 500 and Nasdaq Composite rallying over 1% and 2%, respectively. Mega-cap tech stocks rebounded from last week’s declines, contributing to the gains. Nvidia shares reached an all-time high, rising 6.4%.
Despite a temporary grounding of Boeing’s aircraft over the weekend, the Dow closed more than 200 points higher, or 0.6%. Mega-cap tech stocks stood out as investors bought the dip following concerns about the performance of major names like Apple, which had led the market last year. Some traders remain optimistic about the tech sector’s prospects.
AJ Oden, Global Investment Strategist at JPMorgan Private Bank, stated, “The market’s really trying to figure out how many cuts we’re going to have this year, and for us, we believe that more equities will see all-time highs at the end of 2024.” Oden attributed this optimism to the expectation of a strong year for technology, providing a tailwind for equities. the morning hours
Investors are closely watching key inflation data later in the week, with the December consumer price index scheduled for release on Thursday, followed by the producer price index on Friday. These readings will offer insights into the potential direction of rate cuts by the Federal Reserve.