NASDAQ 100, Dow Jones, S&P 500: Investors Brace for Negative Weekly Results

Highlights

• Stock futures signal potential losing week for Wall Street.
• Nasdaq Composite set for worst weekly performance since April.
• Market sentiment subdued despite surge in technology stocks.

Overview

The major U.S. stock index futures are lower on Friday, signaling a potential losing week for Wall Street. Despite a surge in technology stocks during Thursday’s trading session, which drove the Nasdaq Composite up 0.95% and propelled Apple shares to a new all-time high, the overall market sentiment remains subdued. The S&P 500 managed to gain 0.37%, but the Dow Jones Industrial Average experienced a minor decline due to Boeing’s struggling shares.

Major Indexes Set for Weekly Decline

This week, all three major indexes are on track to break their multi-week winning streaks. The Dow and S&P 500 have both dropped 1% and 0.6%, respectively, since the beginning of the week, while the Nasdaq is down 0.4%, set to record its worst weekly performance since April.

Tech Rebound Fails, Nasdaq Weakens

Thursday’s rebound in the technology sector, led by influential companies like Amazon, wasn’t sufficient to salvage the Nasdaq Composite’s weekly decline. The index is currently on pace to post its weakest week since April. Similarly, the S&P 500 and the Dow Jones Industrial Average are also heading for negative weekly results, ending their 5-week and 3-week winning streaks, respectively.

Indices Posting Strong Monthly Performance

Despite this recent setback, the three indexes have enjoyed a strong June overall. The Nasdaq has surged by 5.4% this month, while the S&P 500 and the Dow have gained 4.8% and over 3%, respectively.

Market Pauses as Fed Signals Rate Hike

Investors have been feeling some pressure since the Federal Reserve’s recent press conference and news release. They indicated that interest rates will not be increased at this time but could be raised 1-2 times later in the year. The market has been taking a breather as investors digest the ongoing outlook for the central bank’s rate hike campaign.

Virgin Galactic Plunges …

In other news, Virgin Galactic witnessed a nearly 14% decline in its stock. The move was fueled by the announcement that it has raised $300 million through a common stock offering. The company aims to secure an additional $400 million to develop and expand its space fleet.

While Apple Hits Fresh All-Time High

Meanwhile, Apple’s shares reached a fresh all-time high of $187.04 on Thursday, contributing to the recovery of the Nasdaq Composite and the S&P 500. However, both indexes remain on track for negative weekly performances. Apple’s stock closed 1.6% higher at $187.00.

Yields Down with Powell in Focus

U.S. Treasury yields experienced a decline as investors analyzed statements from Federal Reserve officials, including Chairman Jerome Powell. The officials reiterated that further interest rate hikes might be necessary to bring inflation closer to the central bank’s 2% target.

US PMI Data on Tap, CarMax Reports

Economic data for the week has been relatively light, and on Friday, market participants will focus on the S&P Global PMI composite data for June. Additionally, earnings reports from CarMax are eagerly anticipated.

Short-Term Forecast:  Challenging

Overall, while the market has been facing challenges and uncertainties. These include the impact of the Fed’s announcements. Meanwhile, investors are keeping a close watch on the performance of key sectors and awaiting crucial economic data to guide their next moves.