Nasdaq Index, Dow Jones, S&P 500 News: Edging Higher Ahead of CPI Data, Delta Soars, Nvidia Pressured

Stock Futures Edge Up Prior to CPI Data

As the market anticipates key U.S. inflation data, stock futures recorded a slight increase on Wednesday morning. This data is crucial for shaping the Federal Reserve’s upcoming interest rate decisions.

At 11:37 GMT, Dow futures are trading 39262.00, up 66.00 or +0.17%. S&P 500 Index futures are at 5266.00, up 5.75 or +0.11% and Nasdaq-100 Index futures are trading 18372.75, up 13.00 or +0.07%.

Delta Soars After Earnings Report

Delta Airlines’ shares experienced a boost, increasing by over 2% following impressive first-quarter earnings. Surpassing LSEG forecasts, Delta achieved an adjusted 45 cents per share with $12.56 billion in revenue. The airline also maintained its full-year earnings forecast.

Nvidia Faces Correction as Market Pressure Mounts

Nvidia, a leading figure in AI technology with its GPUs, is currently experiencing a market correction with a 10% decline from its all-time highs. This setback occurs in spite of a significant increase in non-GAAP earnings per share by 486% last quarter. The company’s stock recently decreased to $853.54, down from a high of $950.

This downturn may be attributed to investors cashing in after a year of exceptional growth, alongside the introduction of Intel’s new AI chip, Gaudi 3, which boasts greater efficiency and speed than Nvidia’s H100 GPU. Analysts at D.A. Davidson anticipate a potential downturn for Nvidia by 2026, pointing to factors such as reduced sizes of AI models, a steadier demand growth, and customers increasingly developing their chips.

Anticipation for March CPI Report

The financial market is closely watching for the March consumer price index (CPI) release, with economists predicting a 0.3% month-over-month increase and a 3.4% annual rise. The CPI figures will play a vital role in predicting the direction of the Federal Reserve’s rate policies.

Market Forecast Tied to CPI Outcome

The impending CPI report will critically influence the market’s movement. An inflation rate exceeding expectations could trigger a market retraction, while a lower inflation figure might lead to a decrease in Treasury yields and an uplift in the equity market.

Investors are also focused on the Federal Reserve’s last meeting minutes for indications on potential rate cuts. Persistent inflation without a faster decline could raise concerns about stagflation, potentially altering market conditions.

Technical Analysis

E-mini S&P 500 Index futures are inching up on Wednesday as investors continue their attempt to claw back recent losses that drove the benchmark to the bearish side of a long-term rising wedge. The move weakened bullish sentiment, making the market vulnerable to a steep short-term breakdown.

On the upside, the key target is the lower end of the rising wedge at 5320.50. Overcoming this level could put the market in a bullish position.

If the move fails to attract buyers then look for the selling pressure to continue into possibly the uptrending 50-day moving average at 5170.65.