US stock futures stabilize after the S&P 500 index rises

Tuesday, July 02, 2024 - 22:51
Point Trader Group

US stock futures recorded stable trading on Tuesday evening after the Standard & Poor's 500 index closed above 5500 for the first time.

Futures tied to the S&P 500 index fell 0.1%. Dow Jones Industrial Average futures fell 28 points, or 0.1%, and Nasdaq 100 futures fell 0.1%.

During Tuesday's main trading session, the S&P 500 rose 0.62% to close above 5,500 for the first time. The Nasdaq Composite Index advanced 0.84% ​​to close at a record high, and the 30-stock Dow Jones Index rose 0.42%.

As the S&P 500 continues to rise, concern is growing on Wall Street that the narrow drive higher will not be sustainable for much longer. The question of when the Fed will start cutting interest rates also weighs on investors. Speaking at a central bank forum on Tuesday, Federal Reserve Chairman Jerome Powell said that while the central bank has made some progress in lowering inflation, it is not quite ready to cut interest rates.

Scott Krohnert, head of US equity strategy at Citi Research, believes a pullback could be imminent in the coming months.

“Our concern is that the market is starting to price in growth expectations that may be difficult for companies, one by one, to meet, especially given the continuing pressures we see on fundamental economic conditions,” he told CNBC on Tuesday.

“Combine that with strong flows into mega-cap tech, the core arena, and an upbeat sentiment reading — all of this suggests to us that we have to prepare for a pullback at some point come summer,” Krohnert added.

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