Nasdaq Index, Dow Jones, S&P 500 News: Wall Street Awaits CPI Data with Cautious Optimism

Key Points

• S&P 500 Futures Gain Ahead of CPI, Earnings Reports
• Crypto Stocks Leap After SEC’s Bitcoin ETF Nod
• Market Outlook Reflects Careful Optimism

S&P 500 Futures Show Slight Uptick

Ahead of the latest inflation data and the onset of the fourth-quarter earnings season, the major stock index futures edged higher on Thursday morning, signaling a guarded optimism on Wall Street.

Futures Market at a Glance

Dow futures saw a marginal increase to 37940.00, a slight 0.01% rise. S&P 500 Index futures were moderately higher at 4825.50, up by 0.11%. Notably, Nasdaq-100 Index futures advanced 0.32% to 16999.75, reflecting a more pronounced positive sentiment.

Post-Market Movements: Focus on KB Home

In after-hours trading, KB Home shares declined by 1%. The company’s forecast for full-year revenue, ranging from $6.4 billion to $6.8 billion, fell in line with analysts’ expectations but failed to boost investor confidence.

Cryptocurrency Stocks Surge After SEC Approval

The SEC’s approval of U.S. bitcoin ETFs significantly buoyed crypto stocks. Major companies like Iris Energy and CleanSpark saw an 8% increase in their stock value, while Marathon Digital and Riot Platforms also experienced notable gains. This regulatory nod is a significant step for cryptocurrency’s integration into mainstream finance.

Economic Reports and Earnings Season on the Horizon

Market focus is now shifting to the forthcoming consumer price index (CPI) report and the start of the fourth-quarter earnings season. The CPI data will be critical in assessing the Federal Reserve’s efforts in price control. Additionally, the financial reports from major banks such as Bank of America and JPMorgan Chase are eagerly awaited, likely to influence market direction.

Outlook: Guarded Optimism

The market’s short-term outlook appears to be cautiously optimistic. The upcoming CPI report and corporate earnings announcements are expected to offer vital insights. The introduction of U.S. bitcoin ETFs adds a positive aspect, but its long-term influence is yet to be determined. The prevailing market mood is one of careful positivity, with a close watch on key economic and corporate developments.

Technical Analysis

The E-mini Nasdaq-100 Index, currently at 17006.25, shows bullish momentum. This assessment is based on its position relative to both the 200-day and 50-day moving averages. The current price stands above the 200-day moving average of 15355.97, indicating a long-term uptrend. Similarly, surpassing the 50-day moving average of 16304.13 reinforces this bullish trend in the shorter term.

The absence of defined minor and main resistance levels suggests the upside is unlimited. The key supports at 16203.25 and 15717.75, if breached, could shift sentiment. Presently, the market leans towards bullishness, driven by its positive stance against these technical indicators.