Market Snapshot: Wall Street eyes fourth day of gains with tech set to lead again

by | Jul 7, 2022 | Stock Market

US stock futures edged higher, leaving Wall Street on course for a fourth consecutive day of gains, with chipmakers expected to lead the rally.How are stock-index futures trading
Dow Jones Industrial Average futures
YM00,
+0.26%
rose 101 points, or 0.3%, to 31,114

S&P 500 futures
ES00,
+0.19%
gained 9.5 points, or 0.2%, to 3,857

Nasdaq 100 futures
NQ00,
+0.25%
increased 38 points, or 0.3%, to 11,918

On Wednesday, the Dow Jones Industrial Average
DJIA,
+0.23%
rose 70 points, or 0.23%, to 31038, the S&P 500
SPX,
+0.36%
increased 14 points, or 0.36%, to 3845, and the Nasdaq Composite
COMP,
+0.35%
gained 40 points, or 0.35%, to 11362.

What’s driving markets Technology stocks are expected to gain ground on Thursday, after South Korea’s Samsung
005930,
+3.19%,
the world’s number one maker of semiconductors, revealed a better-than-expected jump in second-quarter revenues. The news has helped assuage some fears about the depth of the sector’s slowdown. The tech-heavy Nasdaq Composite index is off more than 27% so far in 2022, while the S&P Semiconductor & Semiconductor Equipment index has slumped 37%. In pre-market trading, chipmakers Intel
INTC,
+0.82%
and Nvidia
NVDA,
+1.11%
were adding 1.1% and 1.2% respectively. Investors will be hoping that the recent battering delivered to stocks means that there is opportunity for the market to be pleasantly surprised when the second quarter earnings season gets into full swing next week.

But some are wary. “Stocks could see a second phase of bear market driven by earnings weakness. A trough is likely to come only when unemployment rates are close to peaking, which could be a year or so from now, ” said Trevor Greetham, head of multi asset at Royal London Asset Management. “Broad diversification, active tactical asset allocation and disciplined downside risk management will be key to navigate the bumpy road ahead,” he added. Meanwhile, equity investors appear to have decided that the latest Federal Reserve minutes, released on Wednesday, contained little to be concerned about. Attention will now turn to a speech on Thursday from St Louis Fed president James Bullard, and Friday’s nonfarm payrolls report for fresh clues to the Fed’s policy trajectory. The benchmark 10-year Treasury yield
TMUBMUSD10Y,
2.971%
was up 5 basis points at 2.967%. In Europe, Germany’s Dax 40
DAX,
+1.55%
recovered some more ground, adding 1.6%, and the FTSE 100
UKX,
+1.22%
in London climbed 1.2 per cent after UK media said prime minister Boris Johnson would resign. In Asia, the Shanghai Composite
SHCOMP,
+0.27%
rose 0.3% despite lingering concerns about Beijing’s zero-COVID 19 policy.Other markets Crude oil fell, with West Texas Intermediate
CL.1,
+0.81%,
easing 0.4% to $98.15 a barrel. The U.S. benchmark lost nearly $10 over the previous two sessions amid worries about slowing global demand. WTI surged to more than $130 a barrel in early March after Russia invaded Ukraine, as traders feared sanctions on Moscow would crimp supply. The dollar index
DXY,
-0.20%
was down 0.2% to 10 …

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