Nasdaq Index, Dow Jones, S&P 500 News: Showing Resilience with Eye on Powell, Jobs Data

Pre-Market Optimism

U.S. stocks are exhibiting a cautiously optimistic tone on Thursday, with futures indexes showing marginal gains after a session of positive movement. This follows a period of fluctuation, with major indexes experiencing both gains and losses within the week.

At 13:21 GMT, Dow futures are trading 38735.00, up 29.00 or +0.07%. S&P 500 Index futures are at 5123.75, up 12.00 or +0.23% and Nasdaq-100 Index futures are trading 18116.25, up 72.00 or +0.40%.

Market Overview

Wednesday marked a resurgence for the three major averages, halting a trend of consecutive losses earlier in the week. The S&P sectors, predominantly utilities, largely contributed to this uptick. Despite this recovery, weekly losses persist, with the S&P 500 down 0.6%, the Dow falling 1.1%, and the Nasdaq Composite declining by 1.5%.

Stocks in Focus

In the banking sector, New York Community Bancorp witnessed a dramatic swing, initially dropping over 40% but eventually closing with a 7.5% gain following its announcement of a $1 billion capital raise.

In technology, Apple’s continued downturn contrasts with Nvidia’s premarket gains, the latter buoyed by a nearly 8% week-to-date increase.

Retail also showed mixed results; Victoria’s Secret suffered a 29% drop after mixed quarterly results, whereas American Eagle Outfitters reported a 10% premarket jump owing to strong earnings and a new profit-boosting strategy.

Central Bank and Economic Data

Attention now turns to central bank policies and economic indicators. The Federal Reserve’s Chair, during his House Financial Services Committee testimony, hinted at maintaining the peak policy rate, albeit without immediate rate reductions. Investors remain attentive to his forthcoming Senate Banking Committee appearance, seeking clarity on potential rate cuts. Additionally, key economic data, including jobless claims, trade balance, consumer credit figures, and the critical February jobs report, are poised to influence market direction.

Market Forecast

Considering the current financial backdrop, marked by resilience in key sectors and the anticipation of pivotal economic data and Federal Reserve decisions, a cautiously bullish outlook is suggested. Investors should monitor banking, tech and retail sectors for volatility and keep a close eye on the unfolding macroeconomic scenario, especially regarding NYCB, interest rate policies and job market trends.

Technical Analysis

The main trend is up. A trade through 5157.75 will signal a resumption of the uptrend. A trade through 5063.00 will change the main trend to down.

Investors questioning overvaluation are eyeing the 50-day moving average at 4931.37 as the nearest value area for fresh buying.