Nasdaq Index, Dow Jones, S&P 500 News: Futures Rise Ahead of Inflation Data

S&P 500 Futures Rise as Traders Await Inflation Data

S&P 500 futures climbed on Friday as traders anticipated key inflation data and prepared to close out a robust first half of the year. This movement follows a subdued trading day on Wall Street, where investors awaited May’s core personal consumption expenditures price index (PCE).

At 12:14 GMT, Dow Futures are trading 39569.00, up 19.00 or +0.05%. S&P 500 Index Futures are at 5564.25, up 18.25 or +0.33% and Nasdaq 100 Index futures are trading 20123.50, up 84.00 or +0.42%.

Market Performance Overview

On Thursday, the Dow and S&P 500 each edged up by approximately 0.1%, while the Nasdaq Composite rose 0.3%. The Dow’s underperformance can be attributed to a notable pullback in the second quarter, declining over 1.6%. In contrast, the S&P 500 and Nasdaq gained more than 4% and 9%, respectively. All three indexes have advanced in June, with the Nasdaq leading with a month-to-date rally of over 6%, followed by the S&P 500’s 3% gain and the Dow’s 1% increase.

Nike and Foot Locker Stock Movements

In premarket trading, Nike shares dropped over 14% after the athletic retailer lowered its full-year guidance. This decline also impacted Foot Locker, whose shares fell 5.3% in sympathy. These moves came ahead of the anticipated release of the core PCE index, an inflation measure closely watched by the Federal Reserve.

Importance of PCE Data

The headline PCE reading is expected to remain flat from April, showing a 2.6% increase compared to a year ago. Excluding food and energy, the core PCE is forecast to rise 0.1% month-over-month and 2.6% year-over-year. These inflation statistics are crucial as market participants gauge when the Federal Reserve might start cutting interest rates. Additionally, traders will monitor reports on spending, personal income, and consumer sentiment, all set for release on Friday morning.

First Half Performance of 2024

As the first half of 2024 concludes, the technology-heavy Nasdaq Composite has surged approximately 19%, driven by investor enthusiasm for artificial intelligence. The S&P 500 has jumped nearly 15%, while the Dow has lagged with a gain of just under 4%. AI has significantly boosted market concentration, leading to a strong performance this year.

Market Forecast

Given the current factors driving the price action and anticipated data releases, a bullish outlook for the short term appears likely. The technology sector, particularly driven by AI advancements, is expected to continue its strong performance, potentially lifting the overall market. However, traders should remain cautious of any unexpected inflation data that could influence Federal Reserve policies and market sentiment.

Technical Analysis

The S&P 500 E-mini futures are trending upwards, currently at 5,564.25. The chart shows strong momentum, with prices well above the 50-day and 200-day moving averages, at 5,354.41 and 5,014.45, respectively. Recent highs at 5,588.00 indicate potential resistance, while support is observed near 5,510.25 and 5,396.75.