Wall Street is on track for a lackluster open after the S&P 500’s back-to-back record performances earlier this week. Major index futures were uniformly lower in early trading on Thursday.
The Nasdaq and S&P 500 Index squandered early gains amid growth worries overriding rate optimism. Traders are expected to closely monitor data on private sector activity, existing home sales, and a composite leading index.
In premarket trading on Friday, the SPDR S&P 500 ETF Trust (SPY) fell 0.11% to 544.65, while the Invesco QQQ ETF (QQQ) traded down 0.09% at 481.03.
IT stocks served as drags on Thursday, offsetting strengths in other sectors such as energy, consumer discretionary, communication services, financial, and utility stocks. Major averages started mixed but later uniformly rose amid weak economic data hinting at potential rate cuts.
Jobless claims fell less than expected and housing starts trailed expectations. Growth concerns led to a reversal and the major averages bottomed out by late-afternoon trading. The S&P 500 Index and Nasdaq Composite ended in the red, while the Dow Jones Industrial Average maintained gains.
Market volatility may increase, according to analysts. LPL’s Chief Technical Strategist Adam Turnquist suggests that the market, currently enjoying low volatility due to decelerating inflation and enthusiasm over artificial intelligence, may face increased volatility soon.
Morgan Stanley’s Lisa Shalett noted that a broad market rally could benefit from equal-weighted stock-index strategies and active stock-picking if a soft-landing scenario materializes.
Upcoming economic data includes SP Global’s preliminary manufacturing and services sector surveys, with expected changes in the PMI for both sectors. Additionally, the National Association of Realtors will release the existing home sales report and the Conference Board’s leading economic index for May.
Company news of note:
- Smith & Wesson Brands Inc. (SWBI) fell over 8.5% in premarket trading after earnings.
- CarMax Inc. (KMX) and FactSet Research Systems Inc. (FDS) will release quarterly results.
- Sarepta Therapeutics Inc. (SRPT) climbed roughly 38% after FDA approval for expanded use of its treatment.
- Trump Media & Technology Group Corp. (DJT) rebounded over 1%.
- Nvidia Corp. (NVDA) may continue its slide, trading down by 1.50% in premarket.
Commodities and Global Markets:
- Crude oil futures remained steady above $81 per barrel.
- Gold futures extended gains, trading above $2375.
- The 10-year U.S. treasury yield dipped to 4.226%.
- Bitcoin (BTCUSD) fell below $64000.
Asian markets mostly retreated with declines led by Hong Kong, New Zealand, and South Korea. European stocks traded sharply lower due to disappointing eurozone activity data.
