NASDAQ 100, Dow Jones, S&P 500: Consumer Sentiment, Quadruple Witching Set the Tone

hlights

• US stock futures edge higher after Federal Reserve policy meeting.
• Virgin Galactic surges on commercial space tourism announcement.
• Adobe beats expectations with positive outlook in earnings report.

Overview

On Friday morning, investors are pushing US stock index futures higher. Their attetion is moving from the recent Fed policy meeting to the upcoming economic data release. Several other notable developments are also influencing market sentiment. They include impressive moves in Virgin Galactic and Adobe.

At 10:00 GMT, Dow futures are trading 34734.00, up 10.00 or +0.03%. S&P futures are at 4474.50, up 3.25 or +0.07% and Nasdaq futures are trading 15395.00, up 22.00 or +-.14%.

Market Reacts to Federal Reserve’s Decision and Sustained Rally

Following the Federal Reserve’s decision to hold interest rates steady during its recent policy meeting, investors expressed optimism regarding the future direction of monetary policy. This sentiment contributed to a winning session on Wall Street, with all three major indexes closing more than 1% higher. The S&P 500 and Nasdaq Composite extended their winning streaks, marking the S&P 500’s longest streak since November 2021. The market rally continued throughout the week, with the S&P 500 on track for its best weekly performance since March, and the Nasdaq Composite set for its eighth consecutive winning week.

Virgin Galactic Soars on Commercial Space Tourism Announcement

Shares of Virgin Galactic surged over 40% in extended trading after the company revealed its plans for the first commercial space tourism flight, scheduled for the end of this month. The announcement generated significant excitement among investors, reflecting the growing interest in the space tourism industry. Virgin Galactic also announced its intention to conduct a second commercial flight in early August, with monthly flights expected thereafter. The stock has shown strength this year, gaining 16.7% so far.

Adobe Beats Expectations and Provides Positive Outlook

Adobe, a leading technology company, experienced a more than 3% increase in its stock price following its strong fiscal second-quarter earnings report. The company exceeded Wall Street estimates for both revenue and earnings per share. The positive results were accompanied by an optimistic outlook for the current quarter. As well as full-year performance, which further bolstered investor confidence. Adobe’s robust performance showcases its ability to navigate the competitive technology landscape successfully.

Short-Term Forecast

As the market heads into the final trading day of the week, investors will closely monitor University of Michigan consumer sentiment data. The UofM is scheduled to release this report at 14:00 GMT. Additionally, we expect the quarterly rebalancing of certain indexes and the expiration of certain options, which is commonly referred to as “quadruple witching.”

This event can lead to increased market volatility and trading volume. However, historical data suggests that expiration weeks tend to be higher during bull markets, which could bode well for the S&P 500 and Nasdaq Composite. It is worth noting that Friday also marks the final trading day before the long weekend, as the market will be closed on Monday in observance of Juneteenth.

In summary, investors are shifting their focus to upcoming economic data, resulting in a slight increase in US stock index futures. The market reacted positively to Virgin Galactic’s announcement of its first commercial space tourism flight and Adobe’s strong earnings report. The sustained rally throughout the week, combined with various market factors, sets the stage for an eventful Friday session. Investors will eagerly analyze consumer sentiment data while anticipating potential market volatility due to quadruple witching.