The S&P 500 futures were slightly changed Sunday evening as investors awaited a slew of crucial corporate announcements and the Federal Reserve's big policy decision.Futures linked to the broad market index fell 0.07%. Dow Jones Industrial Average futures fell 37 points. The Nasdaq 100 futures increased by 0.03%.The blue-chip Dow eked out a 2.51-point gain on Friday, …
The S&P 500 futures were slightly changed Sunday evening as investors awaited a slew of crucial corporate announcements and the Federal Reserve’s big policy decision.
Futures linked to the broad market index fell 0.07%.
Dow Jones Industrial Average futures fell 37 points.
The Nasdaq 100 futures increased by 0.03%.
The blue-chip Dow eked out a 2.51-point gain on Friday, finishing up for the 10th day in a row and marking its longest rise since 2017. The S&P 500 concluded the week up 0.7% at 4,536.34, while the Nasdaq Composite dipped 0.6% to 14,032.81.
“Investor sentiment appears to be turning slightly bearish, so we shouldn’t be surprised to see the market trending flat or lower as investors consider selling some of their investments and pocketing some of the nice gains, they’ve made this year,” said Noah Hamman, CEO of AdvisorShares.
Profit-taking will be “part of the investor mindset,” according to Fundstrat’s Tom Lee, especially for those who have had “stupendous” year-to-date returns from tech and FAANG stocks.
“That doesn’t necessarily mean that when they take profits, they have to exit the market,” he said on CNBC’s Closing Bell: Overtime on Friday. “If the Fed surprises us in some ways because it’s more of a dovish pause,” he added, “I think investors will look for ways to find stocks that rise on easing financial conditions.” “They might not return to the FAANG.” They may continue with technology, but they may branch out into industrials and financials. So, absolutely, profit-taking, but that does not imply that the market must fall.”
Investors expect the Fed to raise interest rates by a quarter percentage point at the end of its meeting on Wednesday, and they will be listening to comments from Chair Jerome Powell to get a sense of the central bank’s stance on what happens next as it attempts to navigate a soft landing for the economy.
They’re also keeping an eye on the personal consumption expenditures index, which is due at the end of the week and is the Fed’s favorite inflation gauge.
The upcoming week is likewise expected to be the busiest of earnings season, with Thursday being the busiest day. Approximately 40% of the Dow and 30% of the S&P 500 will provide financial updates this week, including Alphabet, Microsoft, and Meta. Several major pharmaceutical businesses are preparing to report, and it’s a significant week for industrial and energy industries as well.
Key notes:
S&P 500 futures saw little change on Sunday evening as investors awaited key earnings reports and a policy decision from the Federal Reserve.
Investor sentiment is turning bearish, leading to profit-taking, although investors may still find stocks that rise on easing financial conditions.
The upcoming week is expected to be the busiest in terms of earnings reports, with Thursday being the most intense day. Several major companies, including Alphabet, Microsoft, and Meta, will give their financial updates during the week. Industrial and big oil companies are also set to report.
Risk disclaimer:
Please note that this article does not offer any instructions or suggestions regarding investment decisions. It is important for you to conduct your own research or seek professional advice from a qualified professional before conducting an investment decision.
