Stock futures showed little movement on Tuesday following declines in the S&P 500 and Nasdaq Composite from their recent record highs.
Market sentiment appeared cautious as investors awaited key economic data later in the week.
Futures linked to the S&P 500 were largely flat, while Nasdaq-100 futures edged up by 0.05%. Dow Jones Industrial Average futures dipped slightly, losing just 7 points. This calm in the futures market reflects investor hesitancy amid ongoing uncertainty about US inflation data and potential Federal Reserve interest rate decisions.
Major technology stocks contributed to Monday’s pullback in the S&P 500 and Nasdaq Composite, both of which fell 0.6%. The drop was driven by losses in heavyweight companies like Nvidia, which faced a 2.6% slide after Chinese regulators launched an investigation into the chipmaker over alleged violations of the country’s antitrust laws. Nvidia shares were down another 0.3% in pre-market trading on Tuesday.
Other major tech players, including Meta Platforms, Amazon, and Netflix, also posted declines on Monday, further weighing down the indices. Analysts like Nancy Tengler, CEO of Laffer Tengler Investments, have noted that despite calls to shift away from tech for years, it remains a vital sector for both the broader market and the economy.
Company-Specific Moves
- Oracle: Shares of Oracle dropped more than 8% after the software company’s second-quarter results missed Wall Street estimates. Oracle reported earnings of $1.47 per share, just below the $1.48 expected by analysts, with revenue of $14.1 billion in line with projections.
- Broadcom: Citi raised its price target for Broadcom to $205 from $175 ahead of the company’s earnings report, citing expectations that its fourth-quarter results will exceed forecasts. The company’s semiconductor business, particularly its non-AI segment, is expected to be a key driver of growth.
- MongoDB: Shares of the database software firm surged over 9% in after-hours trading as the company raised its fourth-quarter guidance for both revenue and earnings. MongoDB now expects earnings per share in the range of 62 to 65 cents, higher than analysts’ forecasts of 58 cents.
- Vail Resorts: The ski resort operator saw its stock rise nearly 3% after posting a narrower-than-expected quarterly loss. Revenue was reported at $260 million, surpassing analyst estimates.
Asian and European markets presented a mixed picture on Tuesday. South Korea’s Kospi index led gains in Asia, climbing 2.43%, while Japan’s Nikkei 225 gained 0.53%. Conversely, Hong Kong’s Hang Seng and Taiwan’s Taiex indices slipped 0.5% and 0.6%, respectively. In Europe, stocks opened lower as concerns about China’s economic slowdown weighed on investor sentiment. The pan-European Stoxx 600 index fell 0.25%, with all major bourses trading in the red.
Market participants are closely watching key economic data due this week. The US Consumer Price Index (CPI) report, set for release on Wednesday, is expected to reveal a 0.3% increase for November, with a year-over-year inflation rate of 2.7%. The data will be a key indicator for the Federal Reserve, which meets next week to discuss its interest rate policy. Market expectations are leaning toward a potential rate cut as the Fed aims to support the slowing economy while maintaining inflation near its 2% target.
Additionally, the National Federation of Independent Business’s small business survey, scheduled for release Tuesday, will offer insight into the sentiment of small and medium-sized businesses, which are a critical driver of the US economy.
Oil prices were down slightly on Tuesday after rising the previous day. US crude lost 23 cents to trade at $68.14 per barrel, while Brent crude dropped 21 cents to $71.93 per barrel. Both oil benchmarks had seen gains on Monday amid geopolitical unrest in the Middle East.
On the currency front, the US dollar rose to 151.51 yen from 151.22 yen, while the euro slipped to $1.0534 from $1.0555.
The week’s most significant market event is Wednesday’s CPI report, which could shape the Federal Reserve’s decision on interest rates. Investors will also keep an eye on corporate earnings from notable firms like GameStop and Dave & Buster’s, as well as Broadcom’s anticipated earnings release on Thursday.
With input from CNBC and the Associated Press.
