Stocks are poised to open higher on Wednesday as the market looks to extend a rally that has pushed major indexes back to record-high levels.
Futures tied to the S&P 500 were up 0.3% recently, while those linked to the Dow Jones Industrial Average and the Nasdaq added 0.4%. Each of the major indexes gained more than 1% yesterday after a closely watched report on consumer prices showed that inflation held steady in July, reinforcing market expectations that the Federal Reserve will start cutting interest rates soon. The benchmark S&P 500 index on Tuesday closed at a record high for the first time since July 28, while the tech-heavy Nasdaq Composite hit a record closing high for the third time in four days.
The economic data calendar is light today, ahead of tomorrow morning’s scheduled release of wholesale inflation data. Investors will be keeping close tabs on comments from Fed officials who are due to speak today, amid hopes that the combination of tame inflation and a softening labor market will spur the central bank to cut its key rate as soon as next month.
Shares of the world’s largest technology companies, which have paced the recent rally, were mostly higher in premarket trading, though the moves were small. Microsoft (MSFT), Apple (AAPL), Alphabet (GOOG), Amazon (AMZN), Meta Platforms (META), Broadcom (AVGO) and Tesla (TSLA) each rose less than 1%, while AI chips giant Nvidia (NVDA) ticked lower.
Among the big movers this morning, shares of fast casual chain Cava (CAVA) plunged 23% after a disappointing earnings report, while AI cloud provider and Nvidia partner CoreWeave (CRWV) dropped 10% following the release of its quarterly results.
Bitcoin was at $120,600 recently, up from an overnight low of $118,900 and not far from its record high of $123,200 set in mid-July. Shares of major bitcoin buyer Strategy (MSTR), bitcoin miner MARA Holdings (MARA) and cryptocurrency exchange Coinbase Global (COIN) were each up about 1% ahead of the bell.
The U.S. dollar index, which measures the performance of the dollar against a basket of foreign currencies, was down 0.2% at 97.86, trading at a two-week low.
The yield on the 10-year Treasury, which affects borrowing costs on a wide array of consumer and business loans, was at 4.25% this morning, down from 4.29% at yesterday’s close. The yield fell as low as 4.18% last week, its lowest level in three months, as market expectations for interest rate cuts by the Federal Reserve increased after a weak July jobs report.
West Texas Intermediate futures, the U.S. crude oil benchmark, were down 0.1% at $63.10 per barrel, extending a two-week slump that has taken prices to their lowest level since early June. Gold futures rose 0.2% to $3,405 an ounce.