Stock index futures indicated a positive start for the S&P 500 early Wednesday, poised for another record, fueled by upbeat earnings, stabilized bond markets, and a monetary stimulus in China, which bolstered risk appetite.
Current stock-index futures trading reveals:
- S&P 500 futures (ES00) gained 22 points, or 0.4%, reaching 4917.
- Dow Jones Industrial Average futures (YM00) rose 63 points, or 0.2%, hitting 38152.
- Nasdaq-100 futures (NQ00) climbed 132 points, or 0.7%, reaching 17663.
On Tuesday, the Dow Jones Industrial Average fell 96 points (0.25% to 37905), the S&P 500 increased 14 points (0.29% to 4865), and the Nasdaq Composite gained 66 points (0.43% to 15426).
Driving market momentum, technology stocks, particularly after Netflix (NFLX) surged 10% in premarket trading on strong results, initiating the tech sector’s earnings season positively. Kathleen Brooks, research director at XTB, noted that while Netflix isn’t part of the “Magnificent 7,” it remains a bellwether for the tech sector and U.S. consumer health.
Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, echoed optimism, stating that Netflix’s performance signals promising trends in consumer-led earnings.
As the S&P 500 attains record levels, investor focus intensifies on the reception of earnings and forecasts from prominent companies. Ipek Ozkardeskaya, senior analyst at Swissquote Bank, anticipates that robust Netflix results will positively impact major U.S. indices.
Key companies reporting on Wednesday include AT&T (T), Abbott Laboratories (ABT), and Freeport-McMoRan (FCX) before the opening bell, followed by tech giants like Tesla (TSLA), IBM (IBM), and Lam Research (LRCX) after the market close.
The chip sector may receive a lift from positive results by ASML (ASML), a Dutch maker of semiconductor lithography systems, whose shares rose 5% in European trading.
Broader market support comes from Treasuries, where the 10-year yield hovers around 4.1%, signaling increased investor comfort with inflation, growth, and the Federal Reserve’s policy trajectory.
Potential catalysts for bonds on Wednesday include the release of S&P flash U.S. services and manufacturing PMI reports at 9:45 a.m. Eastern and the Treasury’s auction of $61 billion of 5-year notes at 1 p.m.
Global risk appetite received a boost in late Asian trading following China’s central bank announcement of liquidity enhancement by reducing reserve requirements, leading to a second day of sharp gains for Chinese equities.
