Stock Futures Rise as Investors Look to Build on S&P 500’s All-Time High
Stock futures are on the rise as investors seek to capitalize on the S&P 500’s recent all-time high. After a week of losses, stocks made a strong comeback on Friday, with the S&P 500 breaking both its intraday and closing records from January 2022. The Dow Jones Industrial Average and the Nasdaq Composite also closed higher, signaling that all three major indexes are now in the green for 2024. This resurgence confirms that Wall Street is indeed in a bull market that began in October 2022.
On Sunday evening, futures tied to the benchmark S&P 500 showed a gain of 0.21%, while Nasdaq 100 futures rose by 0.57%. Dow Jones Industrial Average futures also ticked up by 51 points, or 0.13%. These positive indicators suggest that investors are optimistic about the market’s performance in the coming days.
Tech stocks, in particular, stood out among the S&P 500 sectors on Friday, experiencing a gain of 2.35% for the day and 4% for the week. This surge in the tech sector contributed significantly to the overall market rally.
The future strength of Wall Street will likely hinge on the actions of the U.S. central bank and its ability to achieve an economic soft landing. Investors are hopeful that a series of benchmark interest rate cuts will begin in March, although there is some uncertainty surrounding whether the initial cut will materialize. According to data from the CME Group’s FedWatch Tool, investors are currently pricing in a roughly 47% chance of a Fed rate cut in March, a significant decrease from the previous week’s estimate of 81%.
This week, investors will closely monitor several economic reports that are set to be released. Of particular interest are the gross domestic product (GDP) data, which will be published by the Commerce Department on Thursday, and the personal consumption expenditures prices report, scheduled for release on Friday. These reports will provide valuable insights into how central bank policymakers view monetary policy moving forward.
Overall, the recent surge in stock futures and the S&P 500’s all-time high indicate a positive outlook for the market. However, the future trajectory of Wall Street will largely depend on the U.S. central bank’s decisions and the upcoming economic reports. Investors will be watching closely to see if the market can continue its upward momentum and sustain its position in the bull market.