US stock futures inched up Wednesday night after a strong session that pushed the S&P 500 over 7000 for the first time.
Futures linked to the S&P 500 (ES=F) and Nasdaq 100 (NQ=F) hovered above the baseline, while Dow Jones Industrial Average futures (YM=F) edged higher by about 0.1%.
Earlier in the day, momentum remained firmly with equities. The S&P 500 (^GSPC) climbed 0.8% to notch a new record, while the Nasdaq Composite (^IXIC) surged 1.6%, extending its winning streak to 11 consecutive sessions. In contrast, the Dow (^DJI) slipped slightly, falling 0.2% as gains in technology shares outpaced the broader market.
Recent strength has been fueled as a divide grows between Wall Street fiscal hopes and the economic reality of the US at war. Markets pumped after President Donald Trump suggested that tensions with Iran could soon de-escalate, signaling that a potential agreement may be within reach.
Looking ahead, investors are turning their attention to a fresh batch of corporate earnings. Companies including Netflix (NFLX), PepsiCo (PEP), and Charles Schwab (SCHW) are scheduled to report Thursday.
On the economic front, market participants will be monitoring weekly jobless claims along with updates on capacity utilization and industrial production for March.
The S&P 500 (SNPINDEX:^GSPC) rose 0.25% to 6,716.09, the Nasdaq Composite (NASDAQINDEX:^IXIC) added 0.47% to 22,479.53, and the Dow Jones Industrial Average (DJINDICES:^DJI) edged up 0.10% to 46,993.26 despite rising oil prices as traders began to look past the Iran conflict.
Market movers
Micron Technology (NASDAQ:MU) rallied ahead of tomorrow’s earnings on memory chip demand optimism. Uber Technologies (NYSE:UBER) gained on news of an extended robotaxi partnership with Nvidia (NASDAQ:NVDA). Qualcomm (NASDAQ:QCOM) benefited from its newly announced $20 billion buyback and a dividend boost.
In contrast, Eli Lilly (NYSE:LLY) fell after HSBC downgraded it from “hold” to “reduce” and slashed its obesity drug forecasts. The Trade Desk (NASDAQ:TTD) slipped in the final hours of trading. Airline stocks gained after Delta (NYSE:DAL) raised its revenue forecast.
What this means for investors
The Federal Reserve opened its two-day meeting today against a backdrop of geopolitical turmoil and high energy prices. The Fed is widely expected to leave rates unchanged. Investors will watch Chair Jerome Powell’s comments tomorrow closely for hints about economic conditions and any future rate changes.
Now in its third week, the Iran war continues to weigh on investor confidence. However, today’s slight gains, even as crude oil again topped $100 per barrel, suggest traders are starting to look beyond the conflict.
Bank of America’s latest Global Fund Manager Survey for March reflected that cautious tone. The report, released today, showed that fund managers are concerned about global growth and rising inflation. Private credit concerns remain, and cash allocations are increasing.