By
Bena Ilyas
April 25th, 2024
As investors brace themselves for another week of market volatility and unsteady stock futures, all eyes are on the crucial economic data releases that could have a profound impact on the financial landscape.
This morning marked a cautious start for investors as stock futures presented a mixed outlook following a positive day on Wall Street.
Overview of the US Stock Futures Market
As the US stock market opened, futures tied to the Dow Jones Industrial Average (INDEXDJX:.DJI) took a small hit, losing 12 points, which represented a nominal 0.03% drop. Similarly, S&P 500 (INDEXSP: .INX) futures edged down marginally, while Nasdaq 100 futures managed to stay slightly above the flatline.
These minor changes in futures prices may look insignificant on the surface, but they indicate a nuanced and cautious mindset among traders.
One of the primary factors contributing to this mixed sentiment was the extended trading performance of the Oracle Corporation (NYSE: ORCL). The tech giant saw its stock price tumble by 9% after missing revenue expectations set by analysts surveyed by LSEG, the parent company of Refinitiv.
This miss in revenue expectations came as a disappointment to investors who had high hopes for the company’s performance. However, it is worth noting that Oracle managed to beat Wall Street’s consensus estimate for earnings, which provided a slight silver lining. These fluctuations in futures followed a positive day on Wall Street, with all three major indices posting gains.
The Nasdaq Composite (INDEXNASDAQ: .IXIC) led the way with a substantial 1.1% increase, while the S&P 500 and the Dow Jones added approximately 0.7% and 0.3%, respectively. Notably, this marked the second consecutive positive session for the S&P 500 and Nasdaq, and the third positive session for the Dow Jones Industrial Average.
Tesla Inc (NASDAQ: TSLA) gained around 10% in the session following a bullish Morgan Stanley (NYSE: MS) upgrade, while Qualcomm Inc (NASDAQ: QCOM) gained nearly 4% after the semiconductor maker announced it will supply 5G modems for Apple smartphones through 2026.
Investors to Watch Key Inflation Data
As investors brace themselves for another week of market volatility and unsteady stock futures, all eyes are on the crucial economic data releases that could have a profound impact on the financial landscape. Small business data is slated for Tuesday, but the real focus lies on the impending inflation figures, with the Consumer Price Index (CPI) expected on Wednesday and the Producer Price Index (PPI) due on Thursday.
The timing of these data points is critical, as it precedes the Federal Reserve’s eagerly awaited policy meeting next week. Market sentiment appears to be overwhelmingly leaning towards the central bank maintaining interest rates at their current levels.
According to CME Group’s FedWatch Tool, as of Monday evening, a staggering 93% of market participants anticipate no change in interest rates during the upcoming meeting. Moreover, a report from The Wall Street Journal suggested a consensus within the Federal Reserve according to insider reports shows that rate hikes will be deferred this month, in a bid to maintain economic stability.