Nasdaq Index, Dow Jones, S&P 500 News: Futures Higher Ahead of Goldman Earnings

Rebounding Ahead of Goldman Sachs Earnings

U.S. stock futures saw a slight increase on Monday, despite recent tensions from geopolitical events and market volatility that negatively impacted major indices last week. The Dow and S&P 500 experienced significant drops, affected by persistent inflation worries and a shaky start to the earnings season.

At 11:23 GMT, Dow Futures are trading 38358.00, up 120.00 or +0.31%. S&P 500 Index Futures are at 5191.75, up 24.25 or +0.47% and Nasdaq-100 Index Futures are trading 18281.75, up 102.50 or +0.56%.

Market Performance

Last week, the Dow Jones Industrial Average dropped by 476 points on Friday, culminating in a 2.4% loss for the week—its most severe since March 2023. Similarly, the S&P 500 fell by 1.5%, marking its worst performance since October 2023. The Nasdaq Composite also declined, posting its third consecutive week of losses.

Earnings and Economic Data

Focus shifts to corporate earnings with scheduled reports from Goldman Sachs and M&T Bank, alongside crucial economic indicators such as retail sales and manufacturing data set to be released on Monday. Despite JPMorgan Chase surpassing profit expectations, its stock declined due to concerns over future lending revenue, compounded by CEO Jamie Dimon’s remarks on global instability and sustained inflationary pressures.

Geopolitical Tensions and Market Reaction

Over the weekend, Iran initiated a significant military strike on Israel—the first direct assault from Iranian soil—using drones and missiles. While most were intercepted, the act has heightened fears of further conflict. Despite the scale, the physical damage in Israel was minimal. However, the markets reacted nervously with gold retreating from its record high, yet still up 15% this year as a preferred safe-haven asset.

Commodities and Cryptocurrencies

Oil prices dipped slightly after the attack, with U.S. crude and Brent futures both seeing marginal declines. Cryptocurrencies like Bitcoin also faced a sell-off, influenced by the increased tensions, though they saw a partial recovery by Sunday evening.

Short-term Market Forecast

As the market braces for the earnings announcement from Goldman Sachs, investor sentiment may see considerable fluctuations. Given the recent underperformance in the banking sector highlighted by JPMorgan Chase’s results, Goldman Sachs’ earnings could either mitigate or exacerbate current market concerns. Should Goldman Sachs report strong results, it could provide a much-needed boost to investor confidence, potentially sparking a relief rally. Conversely, if the results mirror the same lending and inflation concerns indicated by JPMorgan, markets might face additional downward pressure.

Coupled with the geopolitical landscape, these earnings are critical to determining the market’s direction in the coming days. The energy sector, while currently stable, remains sensitive to any further escalations in the Middle East, with oil prices likely fluctuating based on both corporate earnings outcomes and geopolitical developments.

Technical Analysis

E-mini S&P 500 Index futures are edging higher on Monday, while straddling the 50-day moving average at 5182.82. Trader reaction to this intermediate trend indicator is likely to set the tone today.

Although a sustained move over the indicator could trigger a short-covering rally, the chart pattern indicates the way of least resistance is down.