NASDAQ 100, Dow Jones, S&P 500: Mixed Results Ahead of Inflation Data, Fed Rate Decision

Highlights

• Mixed performance in pre-market trade after S&P 500’s highest close of 2023
• Investors await US CPI data, Federal Reserve interest rate decision.
• Treasury yields rise as focus shifts to upcoming Fed meeting.

Overview

The major U.S. stock index futures contracts are putting in a mixed performance on Friday after the S&P 500 finished the previous session at its highest close for 2023, as investors looked ahead to new consumer inflation data set for release next Tuesday, along with the Federal Reserve’s latest policy announcement on Wednesday.

As of 09:40 GMT, blue-chip Dow Jones Industrial Average futures are trading at 34110.00, down 49.00 or -0.14%.  Benchmark S&P 500 Index futures are at 4340.50, down 1.25 points or -0.03% and tech-weighted NASDAQ Composite futures are currently trading at 14687.75.

The S&P 500 is set to achieve its fourth consecutive positive week, marking the first time since last August. As of Thursday’s closing, the broader index had risen by nearly 0.3%. Similarly, the Dow is in a position to secure its second consecutive week of gains, which has not occurred since April, with an increase of 0.2%. In contrast, the Nasdaq Composite is on track to end its six-week winning streak, experiencing a slight decline of 0.02%.

Treasury Yields Rise Ahead of Opening

On Friday, U.S. Treasury yields are edging higher as investors turned their attention towards the upcoming Federal Reserve monetary policy meeting scheduled for June 13 and 14. During this meeting, officials will make an announcement regarding a fresh interest rate decision.

There has been growing uncertainty regarding whether the central bank will continue its rate-hiking campaign or opt to pause it. However, the release of jobs data on Thursday has led investors to believe that the Fed will not raise rates again in the upcoming week.

At 9:24 GMT, the yield on the 10-year Treasury saw a rise of nearly four basis points, reaching 3.7529%. Simultaneously, the 2-year Treasury yield was trading more than three basis points higher at 4.5556%.

Notable Pre-Opening Stock Moves

DocuSign: In extended trading, DocuSign saw a significant jump of 5.6%. The electronic agreements firm surpassed analysts’ expectations for the first quarter, both in terms of revenue and earnings. DocuSign reported adjusted earnings of 72 cents per share, surpassing the consensus estimate of 56 cents. Additionally, its revenues reached $661 million, exceeding the expected $642 million.

Vail Resorts: Shares of Vail Resorts declined by 3.9% as the company fell short of third-quarter earnings expectations. Analysts polled by Refinitiv anticipated earnings of $8.84 per share, but the mountain resort company reported earnings of $8.18 per share. Furthermore, Vail Resorts reported revenue of $1.24 billion, lower than the estimated $1.27 billion.

General Motors: General Motors experienced a 3% increase after CEO Mary Barra and Tesla CEO Elon Musk announced that the automaker would collaborate with Tesla, joining Ford Motor, to utilize Tesla’s charging network in North America. This development also led to a 3% surge in Tesla’s shares during extended trading.

Investors Encouraged by Diversified Rally

Investors found encouragement this week as a wider range of stocks, including small-cap equities, joined the recent rally, but cautionary voices warned about the sustainability of these gains, leading to uncertainty and a sense of being at a pivotal moment in the market.