Nasdaq 100, Dow Jones, S&P 500 News: Microsoft, Nvidia Lead Ahead of Fed Minutes

Highlights

• U.S. futures fall overnight; tech stocks show strength.
• After-hours trading lifts Agilent and Keysight stocks.
• Fed minutes, earnings reports from Best Buy, Lowe’s influence market outlook on Tuesday.

U.S. Stock Futures Dip Ahead of Fed Minutes Release

U.S. stock futures are nudging lower on Tuesday morning, signaling a cautious start to the day’s trading.

At 09:45 GMT, blue chip Dow Jones Industrial Average futures are trading 35185.00, down 40.00 or -0.11%. The benchmark S&P 500 Index is at 4558.50, down 3.75 or -0.08% and the tech-heavy Nasdaq-100 Index is trading 16083.50, down 3.00 or -0.02%.

This follows a strong performance in the previous regular trading session, where the Dow closed higher by over 200 points (0.6%), and the S&P 500 and Nasdaq Composite recorded gains of 0.7% and 1.1%, respectively.

Tech Sector Leads Market Gains

The tech sector demonstrated notable strength. Microsoft’s stock surged 2%, reaching a 52-week high after announcing Sam Altman, former CEO of OpenAI, as the head of its artificial research team. Additionally, chipmaker Nvidia’s shares climbed 2.3%, closing at an all-time high. The S&P 500’s information technology sector was the best performer of the day, with a 1.5% rise.

After-Hours Stock Movements

In after-hours trading, Agilent Technologies saw a nearly 7% increase in stock value after surpassing Wall Street’s fourth-quarter expectations. Similarly, Keysight Technology experienced a 3% rise following its earnings report, which exceeded analysts’ forecasts.

Earnings Reports and Federal Reserve’s Minutes

Investors are also closely monitoring several companies set to release quarterly results, including Lowe’s, Best Buy, and HP. A key focus for Tuesday will be the Federal Reserve’s minutes from their late October to early November policy meeting. Traders are eager for insights into the Fed’s rate decision and any indicators of potential policy shifts. Current Fed funds futures data indicates a near certainty that rates will remain steady in the upcoming December meeting.

Short-Term Forecast: Cautiously Bullish

In the short term, the market is expected to exhibit cautious optimism. The strong performance in the tech sector, combined with positive earnings reports, suggests underlying strength.

However, upcoming economic insights from the Federal Reserve and other earnings releases could sway the market sentiment. The anticipation of steady rates by the Fed adds to this cautiously bullish outlook.

The shortened trading week due to the Thanksgiving holiday might also result in lower trading volumes, potentially affecting market volatility.

Technical Analysis

The E-mini Nasdaq-100 Index, currently at 16074.00, is trading above both its 200-day (14314.76) and 50-day (15136.49) moving averages, signaling a strong bullish trend. This position well above the major moving averages indicates sustained upward momentum.

The index is also positioned above the minor support level of 15717.75, reinforcing the bullish sentiment. Without significant resistance levels identified, there is potential for further upside movement.

The current standing above key moving averages and support levels predominantly shapes the market sentiment, which, in this context, is decisively bullish.