The DOW JONES futures lost 0.08% to 39,081 points, while the S&P 500 futures also rose a slight 0.08% to 5,473 points. NASDAQ 100 futures rose 0.19% to 19,743 points.
The market is coming off a day yesterday, Tuesday, in which both the S&P 500 and the Nasdaq Composite managed to end a three-day bearish streak, driven by NVIDIA’s rebound. The Dow Jones, however, ended up closing lower, dropping almost 300 points.
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NVIDIA’s nearly 7% gain on Tuesday also marked its first positive session after three days of losses. The AI darling’s market capitalization gives it tremendous influence over the S&P 500, and its 154% surge in 2024 has raised concerns about a lack of breadth in the index.
“We still think it’s too early to write off the rest of the market in favor of large-cap tech and especially Nvidia,” Bespoke Investment Group co-founder Paul Hickey told the CNBC. “We expect the market to broaden, but it’s not necessarily a binary choice between mega caps and small caps, but more of a forward bias when looking at these other companies in the S&P 500.”
On the macroeconomic agenda this Wednesday, investors will learn about construction permits and new home sales data for May. However, Wall Street’s attention is focused on the new inflation data that will be released on Friday with the publication of the personal consumption expenditure (PCE) price index for May. The Federal Reserve closely follows this metric to the point that it is its preferred inflation indicator, so investors are waiting for this release to recalibrate their hopes for rate cuts in the second half of the year.
While waiting, investors are also assimilating the latest statements from members of the Fed. Among them, Federal Reserve Governor Michelle Bowman, who warned yesterday that it would only be “appropriate” to reduce rates when data showed that inflation was declining sustainably. towards the 2% target.
In fixed income, always very sensitive to rate expectations, the yield on the benchmark ten-year US bond rises three points to 4.2728%. The two-year bond offers a yield of 4.7306%.
Rivian and FedEx soar on Wall Street
In the business field, this Wednesday the results of General Mills or Paychex, among others, will be known. Today Micron Technology will also publish its accounts, although in the latter case we will have to wait until the close of regular business.
Investors learned last night the results of FedEx, which soared 15% before the bell after beat expectations in its fiscal fourth quarter. The company posted an adjusted earnings per share of $5.41, above the $5.35 expected by analysts. Revenue rose to $22.1 billion, compared to the expected $22.07 billion.
For fiscal 2025, FedEx expects low- to mid-single-digit revenue growth, driven largely by e-commerce and low inventory levels, FedEx Chief Customer Officer Brie Carere said at the conference. of results.
The other big protagonist of the day is Rivian Auto, which soared 37.5% in the pre-opening. The German automotive giant Volkswagen to invest $5 billion in joint venture with electric vehicle maker, 1,000 million now and another 4,000 in the near future. In exchange, the German company gains access to Rivian’s electric vehicle production technology.
In commodity markets, oil prices are rising despite a surprise increase in US stockpiles, driven by geopolitical risks arising from the Middle East conflict and forecasts of a possible reduction in inventories during the peak demand season in the third quarter.
US West Texas futures advanced 0.94% to $81.59 per barrel, while European benchmark Brent futures advanced 0.89% to $84.97.
The euro fell 0.26% against the dollar today, with the exchange rate at 1.0686 dollars for each single currency.
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