ZUMZ - US Stock Futures Tread Water As Indices Perch At Record Highs: Amid Nvidia Spike And ECB Rate-Cut Hopes Analyst Sees More Volatility In Summer | Benzinga
Early indications from the futures market suggest caution after Wednesday’s exhilarating run. Earnings news continues to be positive, reinforcing the strength in corporate profit growth. The rate-cut premise based on which the market has been rallying could be put to the test with a couple of labor market readings due Thursday.
After the Bank of Canada became the first G-7 central bank to cut rates, the first one in about four years, all eyes would be on its counterpart from across the Atlantic. The European Central Bank is widely expected to begin lowering rates despite inflation remaining an irritant. A cut by the bank could provide a further thrust to Wall Street ahead of next week’s Federal Open Market Committee meeting.
Futures Performance (+/-)
Nasdaq 100 +0.05%
S&P 500 -0.01%
Dow -0.07%
R2K -0.43%
In premarket trading on Thursday, the SPDR S&P 500 ETF Trust (NYSE:SPY) edged down 0.01% to $534,61, while the Invesco QQQ ETF (NASDAQ:QQQ) traded up 0.09% at $463.93, according to Benzinga Pro data.
Cues From Previous Session:
U.S. stocks advanced strongly on Wednesday, with the smaller-than-expected private jobs added in May and the stronger-than-expected service sector activity data providing a big thrust to the market. These data allayed both inflation and growth concerns. The increase in risk appetite manifested well and truly in growth-focused tech stocks.
Nvidia Corp. (NASDAQ:NVDA) rallied over 5%, leading the gains in the tech space.
The Nasdaq Composite and the S&P 500 Index hit fresh intraday and closing highs during the session.
Index Performance (+/-) Value
Nasdaq Composite +1.96% 17,187.90
S&P 500 Index +1.18% 5,354.03
Dow Industrials +0.25% 38,807.33
Russell 2000 +1.47% 2,063.87
Insights From ...