U.S. stock futures edged higher on Tuesday, setting the stage for the major indexes to extend their recent winning streak ahead of the highly anticipated Jackson Hole Economic Symposium later this week.
Futures for the Dow Jones Industrial Average rose by 55 points, or 0.1%, while those tied to the tech-heavy Nasdaq 100 increased by 0.3%. S&P 500 futures also climbed 0.2%, positioning the index to potentially secure its first nine-day winning streak since November 2004, according to FactSet data.
This marks a significant turnaround for the market, which faced volatility just over two weeks ago after July’s nonfarm payrolls report came in softer than expected, initially sending stocks lower. Since then, the market has rebounded, recovering all those losses as investors found confidence in cooling inflation figures and a reduction in weekly jobless claims.
The expectation that the Federal Reserve may soon begin cutting interest rates has further buoyed sentiment on Wall Street. Market participants are closely watching Fed Chair Jerome Powell’s upcoming speech at the Jackson Hole conference on Friday for clues on future monetary policy direction.
According to Deutsche Bank’s macro strategist Henry Allen, the market’s rapid recovery can be attributed to easing recession fears, partially influenced by short-term disruptions like Hurricane Beryl, rather than deeper economic issues.
In corporate news, Lowe’s is scheduled to release its quarterly earnings before Tuesday’s market open, offering investors additional insights into consumer spending trends. This follows Walmart’s strong performance last week, which suggested resilience among American consumers.
While Tuesday might be relatively quiet on the economic data front, with no major reports expected, it could still provide a snapshot of market sentiment during the typically subdued August trading period.
On the commodities front, oil prices continued their downward trend amid concerns over weakening demand, overshadowing geopolitical tensions in the Middle East. Brent crude dropped 0.8% to approximately $77 a barrel, while West Texas Intermediate (WTI) declined 0.9%, falling below $74 a barrel.
In the bond market, yields were relatively stable compared to the previous day. The 10-year U.S. Treasury yield stood at 3.874%, while the 2-year yield was slightly higher at 4.063%.
Key Futures Data:
E-Mini Dow: $40,992.00 (-28.00, -0.07%)
E-Mini S&P 500: $5,628.50 (-1.50, -0.03%)
E-Mini Nasdaq 100: $19,860.25 (+2.50, +0.01%)
With market dynamics driven by expectations around Fed policy and ongoing earnings reports, investors remain cautiously optimistic as they navigate through the week’s developments.
