US Stock Futures Remain Steady Amid Tech Rally Slowdown and Rate Concerns
Market Sentiment:
U.S. stock futures showed minimal movement in late-Sunday trading following a surge to record highs, as the tech sector’s AI-driven rally began to lose steam amidst lingering worries about rising interest rates.
Fed Signals:
Investors were still processing signals from the Federal Reserve indicating a cautious approach towards interest rate adjustments in the near future.
Tech Sector Hype:
Initially buoyed by strong AI-related performance from market favorite NVIDIA Corporation (NASDAQ:), Wall Street’s enthusiasm waned as concerns about interest rates persisted.
Market Performance:
The week concluded with U.S. stock benchmarks hitting all-time highs, although the pace of gains appeared to slow. The S&P 500 remained flat at 5,100.25 points, while the Dow Jones steadied at 17,985.25 points. The Nasdaq dipped slightly to 39,177.0 points.
Inflation and GDP Data Awaited:
Traders awaited key inflation data, including the PCE index, while eyeing the second reading of fourth-quarter GDP figures expected on Wednesday.
Retail Earnings Outlook:
As the fourth-quarter earnings season wrapped up, market watchers anticipated reports from major retailers like Lowe’s Companies Inc, Macy’s Inc, TJX Companies Inc, and Best Buy Co Inc for insights into consumer spending trends.
Company Updates:
Alcoa Corp made a $2.2 billion bid for Alumina Ltd, while Ford Motor Company paused shipments of its 2024 F-150 Lightning trucks for quality checks. Berkshire Hathaway Inc reported record earnings over the weekend, influencing market sentiments.
