Nasdaq futures near record highs amid mixed market backdrop

Lina Portman3 weeks ago

0 1 minute read

What is happening here?

Nasdaq futures are flirting with records, up 0.11%. Meanwhile, Dow futures fell 0.10% and S&P 500 futures held on to the starting line, remaining flat.

What does that mean?

The Nasdaq's rise is driven by an uptick in tech stocks, including Apple, Microsoft and Nvidia, which rose slightly in premarket trading. Semiconductor stocks like Broadcom and Qualcomm also posted gains, propelling the Philadelphia SE Semiconductor Index to a record high. But overall market sentiment is mixed: Lennar shares fell 3.1% on disappointing home delivery forecasts, and NextEra Energy fell 5.3% after announcing a takeover. $2 billion stake. sale. On the positive side, Chegg jumped 18.8% following job cuts aimed at restructuring. Investors are closely watching the Federal Reserve for clues on monetary policy, eyeing statements from Fed officials and economic data including May retail sales and industrial production.

Why should I care?

For the markets: The power of technology.

Technology stocks took the S&P 500 to its fifth record close in six sessions and the Nasdaq to its sixth consecutive record. Raising Citigroup's year-end target for the S&P 500 to 5,600 points, suggesting a 2.3% rise, reflects continued optimism. The market, however, remains sensitive to signals from the Federal Reserve, with interest Rate futures are pointing to more than one rate cut this year, according to LSEG data.

The big picture: Economic pulse and political outlook.

Recent data indicates consumer and labor market weaknesses, fueling speculation about interest rate adjustments. The Fed now plans only one rate cut this year, compared to three previously. Ideas from Federal Reserve speakers, like Thomas Barkin and Adriana Kugler, could further shape investor expectations. At the same time, enthusiasm for AI-related companies and strong profits from the technology sector continue to support the market's recovery, although gains are largely concentrated in the heavyweights.