Stocks Take Breather from Friday Record Close
U.S. equity futures fell slightly on Monday after the Dow Jones Industrial Average catapulted to intraday and closing records, and as investors looked ahead to Nvidia earnings.
Futures for the Dow Jones Industrials dipped 87 points, or 0.2%, to 45,628.
Futures for the broader index fell 15.5 points, or 0.2%, to 6,467.75
Futures for the NASDAQ gave up 77.75 points, or 0.3%, to 23,492.
Nvidia is scheduled to report after the bell Wednesday. Meanwhile, Dell and Marvell will report earnings on Thursday. Those names could play a key role in determining whether the tech rally is back on or if there’s further to go in the rotation trade.
In the week ahead, traders are also looking forward to Friday’s July personal consumption expenditure price index, the Fed’s preferred inflation gauge.
Economists polled by Dow Jones expect core PCE, which strips out volatile food and energy prices, will rise 2.9% on a year-over-year basis, compared to its 2.8% increase in June.
On Friday the blue-chip Dow soared 846.24 points, or 1.89%, to 45,631.74. The broad market S&P 500 rose 1.52% to 6,466.91. At its session high, it came within three points of its record.
Meanwhile, the tech-heavy NASDAQ Composite gained 1.88%, ending the session at 21,496.53.
Stocks rallied after Federal Reserve Chair Jerome Powell’s widely anticipated annual speech in Jackson Hole, Wyoming, during which he signaled the central bank could begin easing monetary policy next month. Expectations for a quarter-point rate cut in September jumped to about 84%, from about 75% earlier in the week.
In Japan, the Nikkei 225 forged up 0.4% Monday, while in Hong Kong, the Hang Seng surged 1.9%.
Oil prices added 51 cents to $64.17 U.S. a barrel.
Gold prices sank $4.60 at $3,413.90 U.S. per ounce.
