US stock futures displayed a mixed performance Thursday night, following a session where Wall Street's focus shifted towards value and cyclical stocks. This rotation propelled both the Dow Jones Industrial Average and the S&P 500 to new record highs.
Dow futures indicated gains, aiming to extend the blue-chip index's record-setting performance. S&P 500 futures remained relatively unchanged, while Nasdaq 100 futures experienced a slight decline.
Market Sentiment and Key Movers
Investors are aiming for a strong finish to the week, with all three major indexes poised for weekly gains as they analyze the Federal Reserve's potential actions in the coming year. The previous session saw a move away from high-growth AI stocks, a change that occurred after the Federal Reserve's recent interest rate cut.
The Dow and S&P 500 both achieved new closing highs, while the Nasdaq Composite underperformed. Oracle's stock price decreased following its earnings report, contributing to declines in major technology companies like Google and Nvidia. Visa, Nike, and UnitedHealth Group fueled the Dow's substantial rally.
Notable After-Hours Activity
Broadcom experienced a decline in after-hours trading, despite exceeding fiscal fourth-quarter expectations and providing a positive outlook, including forecasts for doubling AI-related chip revenue. Lululemon's stock price increased after announcing the departure of CEO Calvin McDonald following a period of underperformance.
Earnings Season Winds Down
The current earnings season is nearing its conclusion, with only a few noteworthy reports remaining for the week. Looking ahead to next week, Nike and Micron Technology are among the key companies scheduled to release their earnings reports.
FAQs
Why are the Dow and S&P 500 reaching new highs while Nasdaq is underperforming?
The Dow and S&P 500 are benefiting from a rotation into value and cyclical stocks, while the Nasdaq is being weighed down by declines in some major technology companies like Oracle, Google, and Nvidia. This shift follows recent Federal Reserve actions.
What's driving the mixed performance in stock futures after the market's record-setting day?
Dow futures are up as the index aims to extend its gains, while S&P 500 futures are flat and Nasdaq 100 futures are slightly down, reflecting continued uncertainty and sector rotation after the previous session's activity. Investors are also analyzing the Federal Reserve's potential actions.
What key earnings reports should I watch out for in the coming week
While earnings season is winding down, Nike and Micron Technology are two notable companies scheduled to release their earnings reports next week. These reports could provide further insights into market trends.
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