Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading on February 01, 2023 in New York City.
Michael M. Santiago | Getty Images
U.S. S&P 500 futures inched lower on Wednesday morning
S&P 500 futures and Nasdaq 100 futures dipped 0.15% and 0.29%, respectively. Dow Jones Industrial Average futures were little changed.
During Tuesday’s trading, the Dow Jones Industrial Average posted its first positive session in seven, with the index closing 0.63% higher. Meanwhile, the S&P 500 and the Nasdaq Composite jumped more than 1% each, buoyed by a resurgence in tech stocks after last week’s selloff.
Investors are preparing to close out the best first half for the Nasdaq in 40 years, as they ride a wave of optimism around artificial intelligence that has significantly buoyed a handful of mega-cap tech stocks. The S&P 500 and Nasdaq Composite are higher this year by 14% and 29%.
“We’re sequencing this series of higher highs and higher lows. I wouldn’t call it a momentum market, maybe we’re starting to shift to that a little bit, but certainly it’s a trend market,” Jeff deGraaf, chairman at Renaissance Macro Research, said Tuesday on CNBC’s “Closing Bell.” He noted the leadership in cyclical sectors such as technology and industrials, saying that they are positive indicators.
“Those are pretty good, bulletproof indications that you’re in a bull market,” deGraaf added.
Federal Reserve Chairman Jerome Powell speaks Wednesday morning before a policy panel at the European Central Bank Forum on Central Banking in Sintra, Portugal. The event will be moderated by CNBC’s Sara Eisen and begins at 9:30 a.m. ET.
Powell will be joined by Bank of England Governor Andrew Bailey, European Central Bank President Christine Lagarde and Bank of Japan Governor Kazuo Ueda. Markets will be looking for more clues from Powell about the future of U.S. economic policy. Recently, the Fed chair said he expects additional interest rate increases on the way to battle inflation, though he thinks the central bank can do so at “a more moderate pace.”
— CNBC’s Jeff Cox contributed to this report.
Correction: An earlier version of this story incorrectly stated the magnitude of the Dow’s move on Tuesday.