U.S. equity index futures suggest the S&P 500 could reach yet another record high by Friday’s close, driven by the technology sector’s potential for a third consecutive day of gains, amidst the anticipation of fresh economic data.
Here’s how stock-index futures are performing:
- S&P 500 futures (ES00) rose 5 points to 5,051.50
- Dow Jones Industrial Average futures (YM00) fell 45 points, or 0.1%, to 38,813
- Nasdaq-100 futures (NQ00) climbed 85.75 points, or 0.4%, to 17,998.50
On Thursday, the S&P 500 reached 5,029.73, surpassing its previous record close. The Dow Jones Industrial Average rose to 38,773.12, and the Nasdaq Composite climbed to 15,906.17.
Market Drivers:
Thursday’s record-setting performance by the S&P 500 occurred amidst mixed manufacturing data and a significant decline in January retail sales, easing concerns about the Federal Reserve’s potential interest rate adjustments following a recent inflation report.
According to Ipek Ozkardeskaya, senior analyst at Swissquote Bank, the significance of economic data is diminishing as investors maintain a positive outlook, regardless of the numbers. She notes that investor optimism seems impervious to economic indicators, attributing it to the promise of rate cuts.
Investors brace for a busy day of data releases, including January housing starts and the producer price index, both expected at 8:30 a.m. Additionally, the University of Michigan preliminary consumer sentiment survey for February is due at 10 a.m.
Federal Reserve Vice Chair for Supervision, Michael Barr, is slated to speak at 9:10 a.m., followed by San Francisco President Mary Daly at 12:10 p.m.
Technology stocks lead the way on Friday, with the Nasdaq poised for a third consecutive day of gains, despite being down 0.5% for the week as of Thursday’s close.
Applied Materials Inc. (AMAT) surged 13% in premarket trading following upbeat results and guidance. Tesla Inc. (TSLA) rose 2% in premarket trade, while Nvidia Corp. (NVDA) was up 1.5%. Nvidia is expected to report fourth-quarter results next week.
