Nasdaq Index, Dow Jones, S&P 500 News: Nvidia, GameStop Lead Early Gains

Stock Futures Rise Ahead of Key Inflation Data

Stock futures areb putting in a mixed performance on Tuesday as investors awaited crucial inflation data due at the end of the shortened trading week. The upcoming data is expected to provide a clearer outlook on market conditions. Investors are eagerly watching the April personal income and expenditures report, including the PCE inflation reading, due on Friday, as well as consumer confidence data.

At 11:30 GMT, Dow futures are trading 39118.00, down 39.00 or -0.10%. S&P 500 Index futures are at 5327.25, up 5.75 or +0.11% and Nasdaq 100 Index futures are trading 18922.00, up 46.00, or +0.24%.

Indices Performance in May

The S&P 500 has advanced 5.3% in May, while the Nasdaq Composite has rallied approximately 8%, closing last week at a fresh record high. The Dow Jones Industrial Average has increased by 3.3%, crossing the 40,000 mark for the first time. Investors are eagerly watching the April personal income and expenditures report, including the PCE inflation reading, due on Friday, as well as consumer confidence data.

Nvidia and GameStop Gain

Nvidia shares rose over 2% in premarket trading, building on last week’s gains. GameStop shares surged 25% after the company announced it had raised approximately $933 million through a stock sale. This rise was buoyed by renewed interest in meme stocks and the recent reappearance of the social media account Roaring Kitty, which had driven the 2021 short squeeze.

Market Overview for May

Stocks are on track to end May positively, supported by softer inflation data and better-than-expected quarterly earnings earlier in the month. This combination has bolstered market sentiment, with investors hopeful for Federal Reserve rate cuts sooner than anticipated. However, recent stronger economic data and concerns over potential consumer spending pullbacks have complicated the interest rate outlook.

Fed Official Wants to See More Progress on Inflation

Minneapolis Federal Reserve President Neel Kashkari stated he needs to see several more months of data showing easing inflation before considering rate cuts. He also did not rule out further rate hikes if inflation pressures increase.

Retail and Tech Earnings in Focus

This week, retail companies like Costco Wholesale, Ulta Beauty, and Dollar General will report earnings, potentially providing insights into consumer spending and economic health. Key earnings reports include:

Wednesday: Dick’s Sporting Goods, Abercrombie & Fitch (before market open); Salesforce, HP (after market close)

Thursday: Foot Locker, Dollar General, Best Buy, Kohl’s (before market open); Ulta Beauty, Dell Technologies, Nordstrom, Costco Wholesale, Gap (after market close)

Market Forecast

With key inflation data and consumer confidence reports on the horizon, the market’s direction remains cautiously bullish. However, if inflation shows signs of easing, there could be a even stronger bullish surge driven by the potential for earlier-than-expected rate cuts by the Federal Reserve. Conversely, stronger economic data and increased consumer spending concerns might lead to a more cautious market approach.

Technical Analysis

E-mini S&P 500 Index futures are edging higher on Tuesday, putting the benchmark within striking distance of the record high at 5368.25.

On the downside, minor support is 5273.50. This is a potential trigger point for an acceleration to the downside with the next target the 50-day moving average at 5215.00.