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 ticked down Monday after a slide in technology stocks pressured the S&P 500 and Nasdaq Composite, while the Dow Jones Industrial Average closed at a record high.
Futures tied to the Dow Jones Industrial Average slipped 51 points or 0.12%. S&P 500 futures fell 0.17% while Nasdaq 100 futures pulled back 0.26%.
On Monday, the Dow broke with the broader market and reached a new intraday high before pulling back. Still, the 30-stock index held on to enough of its gains to cement a fresh record close. Meanwhile, a slide in tech stocks on Monday and a gain in less favored segments like energy signaled that investors might be rotating out of one of the market’s key drivers over the past year.
Investors are eager to see earnings from top artificial intelligence beneficiary Nvidia on Wednesday. Shares of the semiconductor firm closed more than 2% lower Monday and were marginally higher in after hours trading. Nvidia has become a key bellwether for tech stocks and AI more broadly, and investors will look toward its second-quarter results to gauge the health of the AI trade.
Stocks are trying to find stable footing after a brutal start to the month. Investors have grown more optimistic, however, after Federal Reserve Chair Jerome Powell signaled on Friday that the central bank’s next move will be to cut benchmark interest rates. Powell did not specify when, or by how much, interest rates would be reduced. Traders are unanimously forecasting a rate cut at the central bank’s Sept.17-18 policy meeting of at least 25 basis points, according to data from the CME Group’s FedWatch Tool.
“It’s going to take time for the cuts to go all over the economy…the market is doing some of the heavy lifting for the Fed, but there’s a lot of question marks,” Allianz chief economic advisor Mohamed El-Erian told CNBC’s “Closing Bell: Overtime” on Monday.
Investors will also parse fresh quarterly earnings from retailer Nordstrom after the closing bell Tuesday for insight into the health of consumers.