Nasdaq Index, Dow Jones, S&P 500 News: Futures Rise as Investor Digest Fed Comments

James Hyerczyk
Updated: Apr 17, 2024, 14:56 GMT+00:00

Key Points:

  • U.S. stock futures defy recent declines, showing resilience.
  • Dow, S&P 500, and Nasdaq-100 futures indicate positive movement.
  • United Airlines surges 5%, while J.B. Hunt Transport Services declines 4%.
  • Investors await U.S. Bancorp and Travelers' earnings for performance insights.
Nasdaq Composite, S&P 500, Dow Jones

In this article:

U.S. Stock Futures Rise Despite Recent Losses

Contrary to recent declines, U.S. stock futures showed resilience on Wednesday morning, maintaining an upward trend despite consecutive days of losses in the S&P 500.

At 11:00 GMT, Dow futures are trading 38230.00, up 184.00 or +0.48%. S&P 500 Index futures are at 5115.75, up 23.25 or +0.46% and Nasdaq-100 Index futures are trading 17938.00, up 56.75, or +0.32%.

Tuesday’s Performance Recap

Breaking a six-day losing streak, the Dow closed Tuesday’s session with a modest 0.17% rise. UnitedHealth notably contributed to this upswing, with a more than 5% increase after surpassing revenue and earnings expectations for the first quarter. However, the S&P 500 and Nasdaq Composite continued their downward trend for the third consecutive day, with declines of 0.21% and 0.12%, respectively.

Key Stock Movements

In pre-market trading, United Airlines experienced a 5% surge following a narrower-than-expected loss and revenue beat, while J.B. Hunt Transport Services declined by 4% after failing to meet analysts’ revenue and earnings projections.

Federal Reserve’s Influence on Treasurys

Investor attention turned to comments from Federal Reserve officials on Tuesday, particularly Chairman Jerome Powell, regarding future interest rate policies. Powell emphasized the need for sustained evidence of inflation easing and economic cooling before considering rate adjustments.

Short-Term Forecast

Despite the initial gains in stock futures, the short-term outlook for U.S. equities remains uncertain. Investors anticipate earnings reports from U.S. Bancorp and Travelers for insights into corporate performance and economic resilience. Additionally, geopolitical developments, especially those impacting oil prices, could trigger sudden market volatility.

In summary, while U.S. equities show short-term resilience, lingering uncertainties surrounding inflation, interest rates, and global geopolitical tensions contribute to a cautious trading environment. Investors should remain attentive and adaptable to evolving market conditions.

Technical Analysis

Daily E-mini Dow Jones

E-mini Dow Jones futures are attempting to claw back some of its previous losses early Wednesday. The daily chart indicates there is plenty of room to the upside if the blue chip average can pick up some momentum.

The 50-day moving average at 39274 is the primary upside target. With the intermediate trend down, we expect sellers to re-emerge on a test of this level.

Bearish traders are eyeing a resumption of the sell-off under yesterday’s low at 37838. There potential downside target is the 200-day moving average at 37008.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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