Traders work on the floor of the New York Stock Exchange during morning trading on February 23, 2024 in New York City.
Michael M. Santiago | Getty Images
Stock futures fell on Monday after a slide in technology stocks weighed on the S&P 500 and Nasdaq Composite, while the Dow Jones Industrial Average closed at a record high.
Futures are linked to Dow Jones Industrial Average It fell 62 points or 0.15%. S&P 500 Futures It decreased by 0.2% while Nasdaq 100 Futures Decrease by 0.28%.
On Monday, the Dow Jones Industrial Average broke out of the broader market and hit a fresh intraday high before retreating. However, the 30-stock index held on to enough of its gains to post a new record close. Meanwhile, Monday’s slide in technology stocks and gains in less-favored sectors like energy suggested investors may be turning away from one of the market’s main drivers over the past year.
Investors are eager to see profits from the biggest beneficiary of artificial intelligence. Nvidia On Wednesday, shares of the semiconductor company closed down more than 2% on Monday and were slightly higher in after-hours trading. Nvidia has become a leading indicator for technology and AI stocks more broadly, and investors will be looking to second-quarter results to gauge the health of the AI trade.
Stocks are trying to find a steady footing after a rough start to the month. However, investors have become more optimistic after Federal Reserve Chairman Jerome Powell signaled on Friday that the central bank’s next move would be to cut benchmark interest rates. Powell did not specify when or by how much interest rates would be cut.
Traders unanimously expect the central bank to cut interest rates by at least 25 basis points at its policy meeting on Sept. 17-18, according to data from CME Group's FedWatch tool.
“It will take some time before the cuts are spread across the economy,” Mohamed El-Erian, chief economic adviser to Allianz, told CNBC. “The market is doing some of the heavy lifting for the Fed, but there are a lot of question marks.”
Investors will also be analyzing the retailers' new quarterly earnings. Nordstrom After the closing bell on Tuesday to learn about consumer health.
