Traders work on the New York Stock Exchange trading floor during morning trading on May 17, 2024.
Michael M. Santiago | Michael M. SantiagoGetty Images
U.S. stock futures edged higher in early trade on Tuesday after the S&P 500 and Nasdaq closed at record highs.
Dow Jones Industrial Average futures rose 77 points, or 0.19%. S&P 500 futures and Nasdaq 100 futures rose 0.26% and 0.40%, respectively.
this S&P 500 Index and Nasdaq Index Monday’s trading session ended at record highs again, with stocks posting modest gains as investors awaited key inflation data and earnings results later in the week. The broader index closed up 0.1%, while the tech-heavy Nasdaq rose 0.3%. Meanwhile, the Dow Jones Industrial Average lagged, closing down 31 points, or 0.1%.
The S&P 500 continued to rise as investors became increasingly optimistic that the Federal Reserve would soon begin easing monetary policy as price pressures eased and growth slowed. But others worry about a coming correction, urging investors to broaden their horizons.
“You do want to maintain broad diversification,” Courtney Garcia, senior wealth advisor at Payne Capital Management, told CNBC’s “Closing Bell” on Monday. “I don’t think so. The momentum trade here is winding down, especially in the short term, but when it changes, it changes very quickly, and there’s a lot of opportunity here when you think about valuations.”
Federal Reserve Chairman Jerome Powell will testify before Congress this week as part of his semiannual monetary policy update. Powell will speak first to the Senate Banking Committee on Tuesday and then to the House Financial Services Committee on Wednesday.
Key inflation data will be released later this week, with June consumer price index due on Thursday and producer price index on Friday.
On the earnings front, PepsiCo and Delta Air Lines are scheduled to report results on Thursday. Bank earnings from Citigroup and JPMorgan are due on Friday.
— CNBC’s Jeff Cox contributed to this report.
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