Global Courant
Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading on February 1, 2023 in New York City.
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US S&P 500 futures moved a few inches lower Wednesday morning
S&P 500 futures and Nasdaq 100 futures fell 0.15% and 0.29%, respectively. Dow Jones Industrial Average futures were little changed.
During Tuesday’s trading, the Dow Jones Industrial Average posted its first positive session in seven, with the index closing 0.63% higher. Meanwhile, the S&P 500 and the Nasdaq composite each rose more than 1%, supported by a rebound in technology stocks following last week’s sell-off.
Investors are preparing to close out the best first half for the Nasdaq in 40 years as they ride a wave of artificial intelligence optimism that has significantly supported a handful of mega-cap tech stocks. The S&P 500 and Nasdaq Composite are up 14% and 29% respectively this year.
“We’re following this series of higher highs and higher lows. I wouldn’t call it a momentum market, maybe we’re starting to shift into that a little bit, but it’s definitely a trending market,” Jeff deGraaf, president of Renaissance Macro Research, said on Tuesday. CNBC’s “Closing Bell.” He pointed to leadership in cyclical sectors such as technology and industrials and said these are positive indicators.
“Those are pretty good, bulletproof indications that you’re in a bull market,” deGraaf added.
Federal Reserve Chairman Jerome Powell speaks Wednesday morning for a policy panel at the European Central Bank Forum on Central Banking in Sintra, Portugal. The event will be moderated by CNBC’s Sara Eisen and will begin at 9:30am ET.
Powell will be joined by Bank of England Governor Andrew Bailey, European Central Bank President Christine Lagarde, and Bank of Japan Governor Kazuo Ueda. Markets will be looking for more clues from Powell about the future of US economic policy. Recently, the Fed chairman said he expects additional rate hikes to fight inflation, though he thinks the central bank can do so at “a more moderate pace.”
– CNBC’s Jeff Cox contributed to this report.
Correction: An earlier version of this story incorrectly stated the magnitude of the Dow’s move on Tuesday.
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