How does stock index futures trading work?
S&P 500 futures fell 0.02%.
Dow Jones Industrial Average futures fell 0.05%.
Nasdaq 100 futures rose 0.09%.
On Monday, the Dow Jones Industrial Average rose 273 points, or 0.65%, to 42,388, the S&P 500 rose 15 points, or 0.27%, to 5,824, and the Nasdaq Composite Index rose 49 points, or 0.26%, to 18,567. It became.
Futures on Wall Street on Tuesday as tensions rose ahead of the U.S. election in a week and investors focused on earnings reports from heavyweights in the technology sector, which accounted for much of the S&P 500’s 22.1% rise. shows a calm development. this year.
Google owner Alphabet will report its earnings after the closing bell on Tuesday, while Microsoft and Meta will report on Wednesday, followed by Amazon.com and Apple the next day.
“S&P 500 futures have been in a very volatile range since the first week of October, and this consolidation makes sense given that investors are anxiously awaiting earnings from tech companies. Five of the seven Magnificent 7 stocks are scheduled to be announced this week, with a market capitalization of $12 trillion,” said Mark Newton, head of technology strategy at Fundstrat.
“This represents about a quarter of the total market capitalization of the S&P 500, so the earnings results could be an upside or downside surprise that proves to be meaningful. “Maybe it makes sense,” Newton added.
On the other hand, the 10-year US Treasury yield has recovered to the 4.3% level for the first time in three months, which has somewhat dampened the bullish momentum.
The rise in yields comes as President Donald Trump’s victory on Nov. 5 could reignite inflationary pressures through his proposed import tariffs and lead to more debt issuance as tax cuts widen government deficits. This is happening amidst concerns.
The upward pressure on yields also comes from signs that the U.S. economy is in decent shape, so investors are looking ahead to the labor market in the coming days, starting with Tuesday’s jobs survey and culminating with Friday’s job survey. They will be keenly aware of the latest information. Non-agricultural employment report.
