Stocks are likely to move to the upside in early trading on Wednesday, regaining ground after moving sharply lower over the past several sessions. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.5 percent.
Bargain hunting may contribute to initial strength on Wall Street following the recent pullback, which saw the Nasdaq and the S&P 500 close lower for four straight sessions.
The tech-heavy Nasdaq tumbled to its lowest closing level in three months on Tuesday, while the S&P 500 fell to a one-month closing low.
Overall trading activity may be somewhat subdued, however, as traders await earnings news from AI darling and market leader Nvidia (NVDA).
Nvidia, which is due to report its fourth quarter results after the close of today’s trading, is jumping by 2.7 percent in pre-market trading after moving sharply lower over the past few sessions.
“Nvidia is due to report its fourth-quarter and full-year results on Wednesday and investors will be looking forward to the usual demolition of forecasts and also positive guidance for the next quarter from chief executive Jensen Huang,” said AJ Bell investment director Russ Mould.
“Failure to deliver the customary upside surprise might not sit well,” he added. “Nvidia’s shares are no higher than they were last summer, despite strong earnings and ongoing investor enthusiasm for all things related to artificial intelligence, so any unexpected disappointment could cause some share price turbulence.”
Shortly after the start of trading, the Commerce Department is scheduled to release its report on new home sales in the month of January.
New home sales are expected to tumble 2.6 percent to an annual rate of 680,000 in January after surging 3.6 percent to an annual rate of 698,000 in December.
After moving sharply lower early in the session, stocks regained some ground over the course of the trading day on Tuesday but remained firmly negative. With the continued weakness, the Nasdaq and the S&P 500 closed lower for the fourth straight session.
The Nasdaq plunged 260.54 points or 1.4 percent to a three-month closing low of 19,026.39 and the S&P 500 slid 28.00 points or 0.5 percent to a one-month closing low of 5,955.25, although the narrower Dow bucked the downtrend and climbed 159.95 points or 0.4 percent to 43,621.16.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Wednesday. Japan’s Nikkei 225 Index fell by 0.3 percent, while China’s Shanghai Composite Index jumped by 1.0 percent and Hong Kong’s Hang Seng Index surged by 3.3 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the German DAX Index is up by 1.7 percent, the French CAC 40 Index is up by 1.4 percent and the U.K.’s FTSE 100 Index is up by 0.7 percent.
In commodities trading, crude oil futures are edging down $0.03 to $68.90 a barrel after plunging $1.77 to $68.93 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $2,924.50, up $5.70 compared to the previous session’s close of $2,918.80. On Tuesday, gold dove $44.40.
On the currency front, the U.S. dollar is trading at 149.45 yen compared to the 149.03 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0487 compared to yesterday’s $1.0514.
Business News
Futures Pointing To Initial Rebound On Wall Street
2025-02-26 13:43:35
