Nasdaq Index, Dow Jones, S&P 500 News: All Eyes on PCE Index Amid Intel’s Weak Guidance

Key Points

• Intel’s weak guidance pressures Nasdaq 100 futures.
• S&P 500 near record high, defying tech sector struggles.
• PCE index, earnings reports key to future market direction.

Market Overview

The pre-market session on Friday saw major U.S. stock index futures in the red, with Nasdaq 100 futures leading the decline. This downward trend was primarily influenced by Intel’s disappointing fiscal first-quarter guidance, which fell short of Wall Street expectations.

At 11:14 GMT, blue chip Dow futures are trading 38152.00, down 58.00 or -0.15%. Benchmark S&P 500 Index futures are at 4915.50, down 7.75 or -0.16% and tech-weighted Nasdaq-100 Index futures are trading 17537.00, down 97.50 or -0.55%.

Tech Sector Under Pressure

Nasdaq 100 futures are being significantly impacted by Intel’s after-hours announcement. Intel’s stock plummeted by 10% following their guidance release, signaling weaker prospects for the tech giant. Additionally, semiconductor stock KLA Corp experienced a more than 5% decline after announcing lighter revenue and earnings per share guidance for its fiscal third quarter.

S&P 500 and Dow Jones Performance

Contrasting the tech sector’s struggles, the S&P 500 and Dow Jones Industrial Average showed resilience on Thursday. The S&P 500 leaped to a fresh all-time high, gaining 0.5%, while the Dow Jones added 0.6%. This growth occurred despite Tesla shares dropping over 12%. The S&P 500 is up 1.1% for the week, with the Dow Jones following at a 0.5% increase.

Economic Data Influence

Investors’ optimism was bolstered by encouraging economic data. The U.S. GDP growth for the fourth quarter exceeded expectations, growing at an annualized rate of 3.3% against the forecasted 2%. This data has raised hopes of avoiding a deep recession.

Treasury Yields and Inflation Outlook

The 10-year Treasury yield slipped, falling 2 basis points to 4.1085%, in response to the GDP data. Inflation indicators showed a slowdown, with the core personal consumption expenditures price index rising by 2.7% annually, down from 5.9% a year earlier. This slowdown in inflation and robust GDP growth have led to speculation about a potential early spring rate cut by the Federal Reserve.

Short-Term Market Forecast

Technical Analysis

E-mini Dow Jones futures are edging lower on Friday with the market struggling for a fourth session to produce an all-time high. The market has been under pressure since hitting a record peak on Monday at 38302.

The key level to watch today is last week’s close at 38045. A close under this level will put the market in a bearish position with the next downside target the 50-day moving average at 37119.00.