The New York Stock Exchange saw a slight dip in U.S. S&P 500 futures on Wednesday night following a two-day rise in the market. Nasdaq 100 futures also fell by 0.32%, while Dow Jones Industrial Average futures dropped by 0.18%.
The dip in futures came after Micron shares slipped 5% in extended trading, despite beating third-quarter expectations. Levi Strauss also saw a 12% drop in its latest quarterly revenue, disappointing investors.
Bank stocks were in focus as the Federal Reserve announced that the biggest U.S. firms are prepared to withstand a severe recession scenario. Goldman Sachs shares slid 1.7%, while JPMorgan Chase shares saw a slight increase.
Investors are eagerly awaiting the release of May’s personal consumption expenditures price index on Friday, hoping for easing pricing pressures that could lead to a potential interest rate cut by the Fed later this year.
Despite the overall sluggish trading activity, megacap tech companies continued to outperform, with Amazon shares reaching an all-time high and surpassing $2 trillion in market capitalization for the first time.
Market strategists are divided on the future of the market, with some anticipating a minimal increase in the S&P 500 by the end of the year. Brian Levitt, global market strategist at Invesco, emphasized the importance of aligning market expectations with the Fed’s actions for a successful soft landing.
Corporate earnings from Walgreens Boots Alliance and Nike are expected on Thursday, along with key economic indicators such as weekly jobless claims, durable goods orders, and pending home sales. Investors will be closely monitoring these developments to gauge the market’s direction in the coming days.
