Nasdaq Index, Dow Jones, S&P 500 News: Stock Futures Jump as Micron Surges

Highlights

• Stock futures rebounding after recent profit-taking
• Micron’s post-earnings surge boosts tech sector
• Mixed market sentiment due to Fed’s rate cut outlook

Stock Futures Attempting to Rebound

Stock futures are currently climbing on Tuesday, with Dow, S&P 500, and Nasdaq futures all registering gains. This rise follows a period of profit-taking during the previous session that led to a drop in major indices, marking a pause in the recent market rally.

At 09:58 GMT, blue chip Dow futures are trading 37622.00, up 177.00 or +0.47%. Benchmark S&P 500 Index futures are at 4776.50, up 26.75 or +0.56% and tech-weighted Nasdaq Composite futures are trading 16886.25, up 120.00 or +0.72%.

Micron’s Earnings Impact

In the technology sector, Micron Technology is experiencing a post-earnings surge, with shares rising over 4%. This jump is attributed to the company’s robust financial report and forecast, outperforming Wall Street expectations.

Fed’s Influence on Market Sentiment

The Federal Reserve’s recent dovish stance has traders anticipating several rate cuts by 2024, possibly starting in March. However, Fed officials are cautioning against expectations for rapid rate cuts, creating a mixed sentiment in the market. This cautious approach from the Fed is not aligning with the market’s more aggressive expectations for rate cuts.

Treasury Yields and Economic Indicators

The 10-year U.S. Treasury yield is fluctuating, currently near its lowest level since July. This movement is in response to the Fed’s indications and the assessment of future rate cuts. Additionally, recent economic data, including a rise in U.S. existing home sales and an increase in consumer confidence, are influencing market trends.

Market Outlook

With the market having shown strong performance recently, a short-term consolidation phase seems to be unfolding. Traders are closely monitoring upcoming economic reports, including the U.S. third-quarter GDP, jobless claims data, and the November core PCE index, to gauge future market direction. These reports, along with corporate earnings like Nike’s, are expected to heavily influence market sentiment in the short term.

Technical Analysis

The E-mini Nasdaq-100 Index, currently priced at 16871.25, is trading above both its 200-day moving average of 15115.98 and 50-day moving average of 15824.35, indicating a bullish sentiment in the market. This position significantly above the moving averages suggests strong buying interest and market confidence.

Furthermore, the current price is well above the main support level of 15717.25 and the minor support level of 16203.25, reinforcing the bullish outlook. With the lack of specified resistance levels, the path for further upward movement appears less hindered.

Overall, the market setup, characterized by the index’s position relative to key moving averages and support levels, points towards a bullish market sentiment for the E-mini Nasdaq-100 Index, suggesting a positive trend in the short term.