Traders work on the trading floor of the New York Stock Exchange.
New York Stock Exchange
S&P 500 Index Futures It fell 0.14% in early trade on Tuesday, as traders awaited earnings reports from major companies after the benchmark index posted its best day in more than a month.
Futures prices tied to broad market indexes are trading close to flat lines. Dow Jones Industrial Average Futures down 0.08%, Nasdaq 100 Futures down 0.26%.
The move came after gains on Wall Street as technology stocks rebounded from last week’s selloff. this S&P 500 Index rose more than 1%, marking its best trading day since early June, while Dow Chemical up 0.3%.
In view of this theme, high-tech Nasdaq Index It outperformed the market, rising 1.6%. The S&P 500 was led by information technology and communication services sectors, which rose about 2% and 1.2% respectively.
Mainly small stocks Russell 2000 It rose 1.7% intraday. That builds on last week’s gains, which were seen as a sign of traders moving money into this group from big tech companies that have seen huge gains this year.
The shift toward small-cap stocks also comes as investors are growing increasingly excited that the Federal Reserve is about to start lowering interest rates, a move seen as particularly helpful to smaller and more cyclical companies.
Larry Tentarelli, chief technical strategist at Blue Chip Daily Trend Report, said the rotation from large-cap tech stocks to small-cap stocks remained prevalent last week. He said Monday’s sharp rise was an attempt by investors to get ahead of possible positive earnings reports in the coming days, as well as this weekend’s release of the personal consumption expenditures price index.
“I do believe the rotation story is still intact,” Tantarelli said. “If we get a bullish inflation report, I think you might see small caps and bank stocks move higher again.”
As corporate earnings season approaches, investors will be paying close attention to releases from high-profile companies, such as General Motors, Coca Cola, Comcast, ups and Spotify Closing before bell Tuesday. tech giants letter and Teslaand toy manufacturers MattelResults are expected to be announced after the market closes.
Traders will also focus on Tuesday morning’s economic data on non-manufacturing and existing home sales.
Revealed: Comcast owns NBCUniversal, the parent company of CNBC.
About The Author
