Traders work on the floor of the New York Stock Exchange on June 24, 2024.
Brendan McDermid | Reuters
U.S. stock futures were trading slightly above the flat line Wednesday morning after Standard & Poor's 500 Closed above 5500 for the first time.
Futures are linked to Standard & Poor's 500 It increased by 0.03%. Dow Jones Industrial Average Futures It was 0.1% higher while Nasdaq 100 Futures It was slightly higher.
Paramount Global Shares of Skydance Media rose about 7% in extended trading after reports from The Wall Street Journal and The New York Times that the company has reached a preliminary agreement to buy National Amusements, the entertainment giant's controlling shareholder.
During Tuesday's main trading session, the All Share Index rose 0.62% to close above the 5,500-point level for the first time. Nasdaq Composite It rose 0.84% to close at a record high, and 30 stocks Dow It increased by 0.41%.
As the S&P 500 continues to climb, Wall Street is growing concerned that the narrow lead higher won’t be sustainable for much longer. The question of when the Federal Reserve will start cutting interest rates is also weighing on investors. Speaking at a central bank forum on Tuesday, Fed Chairman Jerome Powell said that while the central bank has made some progress in reducing inflation, it’s not quite ready to cut rates.
Scott Kronert, head of U.S. equity strategy at Citi Research, believes a pullback could be imminent in the coming months.
“What concerns us 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 continued pressures we see on underlying economic conditions,” he said on CNBC’s “Closing Bell” on Tuesday.
“Combine that with strong flows into the high-growth tech sector and the core arena and the bullish sentiment reading – all of this suggests to us that we should be prepared for a pullback at some point as the summer approaches,” Kronert added.
A slew of new economic data is due on Wednesday ahead of the Fourth of July holiday. ADP private payrolls data for June is due, as are weekly jobless claims numbers. The U.S. trade deficit balance for May is due, while the S&P Global Services PMI and ISM Non-Manufacturing PMI readings for June are due.
Minutes from the June policy-setting Federal Open Market Committee meeting are due out in the afternoon.
The New York Stock Exchange closes early at 1 p.m. ET on Wednesday, and will remain closed on Thursday for Independence Day.
