U.S. stock index futures early Tuesday suggested traders would trim a portion of the previous sessions strong gains as a profit warning from Samsung Electronics weighed on the technology sector.
How are stock-index futures trading
-
S&P 500 futures
ES00,
-0.27%
dipped 14 points, or 0.3%, to 4787 -
Dow Jones Industrial Average futures
YM00,
-0.28%
fell 121 points, or 0.3%, to 37812 -
Nasdaq-100 futures
NQ00,
-0.39%
eased 69 points, or 0.4%, to 16735
On Monday, the Dow Jones Industrial Average
DJIA
rose 217 points, or 0.58%, to 37683, the S&P 500
SPX
increased 66 points, or 1.41%, to 4764, and the Nasdaq Composite
COMP
gained 320 points, or 2.2%, to 14844.
What’s driving markets
Some shine was coming off the tech sector trade early Tuesday after South Korea’s Samsung Electronics
005930,
said its fourth-quarter operating profit may fall 35% as weak consumer demand for smartphones hits sales of memory chips.
The news looked like cutting short Wall Street’s latest rally.
After a several soft days to begin 2024, the S&P 500 bounced 1.4% and the Nasdaq Composite surged 2.2% on Monday, with big technology stocks such as Apple
AAPL,
up 2.4%, and Nvidia
NVDA,
jumping 6.4% leading the charge.
Helping reignite the rally was a brief dip back below 4% for the 10-year Treasury yield as investors welcomed news that U.S. consumers’ one-year inflation expectations were at their lowest since January 2021.
Investors also welcomed the sight of U.S. WTI crude oil falling back towards the $70 a barrel level, hoping the retreat will ease inflationary pressures.
“Falling Treasury yields tempted investors to buy technology shares on the dip,” said Richard Hunter, head of markets at Interactive Investor.
“The likes of Alphabet
GOOG,
Amazon
AMZN,
and Microsoft
MSFT,
also saw renewed buying interest amid the ongoing debate surrounding the timing and levels of interest rate cuts, which are expected to kick in later this year should inflation finally be tamed.” Hunter added.
A key update on inflation will come on Thursday, when the consumer price index for December will be released. The market is pricing in a 58% chance that the Federal Reserve will start lowering interest rates at its March policy meeting.
U.S. economic updates set for release on Tuesday include the trade deficit for November at 8:30 a.m. Eastern. The Fed’s Vice Chair for Supervision Michael Barr will take part in a discussion at noon.
In Asia, Japan’s Nikkei 225
JP:NIK
rose 1.2% to close at its best level since March 1990. In contrast, Hong Kong’s Hang Seng
HK:HSI
initially rose following indications Beijing may ease monetary policy by cutting banks reserve requirements, but ended down 0.2% to its lowest since October 2022 as fears about China’s economy lingered.
