Traders work on the floor of the New York Stock Exchange on July 11, 2024.
Spencer Platt | Getty Images
S&P 500 Futures Technology stocks rose on Monday after the broad market index suffered its worst weekly loss since April last week as investors ditched large-cap tech stocks in favor of smaller names.
Futures linked to the broad market index rose 0.5%. Dow Jones Industrial Average And Nasdaq 100 Futures It added 0.2% and 0.7% respectively.
Traders also watched the U.S. political landscape after President Joe Biden dropped out of the presidential race on Sunday and endorsed Vice President Kamala Harris as the Democratic nominee. Since Biden’s disastrous debate performance in June, many analysts had been predicting a stronger chance of former President Donald Trump winning in November.
Jay Hatfield, CEO of Infrastructure Capital Advisors, said he expected a “muted stock market reaction” to Biden's resignation from the presidential race, as had been widely expected as calls for him to withdraw grew.
“The fact that Biden has endorsed Kamala Harris reduces the uncertainty,” Hatfield said. “There could be a slight pullback in Trump trading on Monday as Vice President Harris is seen as having a slightly better chance of winning.”
Earnings and central bank policy will also be top of mind for investors. Traders were pricing in a 93% chance of the Fed cutting rates at its September meeting. With that in mind, investors have been selling big tech stocks, winners of the market rally, in favor of interest-rate-sensitive stocks such as small-cap companies and industrial companies that are expected to benefit from lower rates.
Over the past week, the S&P 500 and Nasdaq Composite fell about 2% and 3.7%, respectively, marking their biggest weekly losses since April. The Dow Jones advanced 0.7%, while the Russell 2000, which focuses on small-cap companies, rose 1.7%.
On the earnings front, investors will be looking towards: VerizonApple is scheduled to report its quarterly financial results on Monday morning. No major economic updates are expected until later in the week.
