Nasdaq, S&P 500 Futures Spike On Hopes Of Tame Inflation Data; Oil, Bitcoin Jump: Analyst Tells Why 2024 May Not Be All Doom And Gloom

Thursday’s session is set to open on a positive note for U.S. stocks, with attention focused on forthcoming inflation data that could influence trading direction. A lower-than-expected inflation figure might trigger a rally, propelling the S&P 500 Index to new highs. Conversely, indications of increasing inflationary pressure could lead to a rise in bond yields and a further decline in risky assets, including equities.

Analysts are confident that, following a lackluster January, sentiment will likely improve, a trend often observed in presidential election years, potentially extending into the first quarter.

Cues From Wednesday’s Trading:

In Wednesday’s trading, major averages closed notably higher as traders embraced risk and gravitated toward tech stocks following their recent dip. Nvidia Corp. (NASDAQ:NVDA) demonstrated strength, registering a 2.28% gain and settling at a new high.

While the averages initially opened slightly higher and briefly entered negative territory, they rebounded from early lows, steadily climbing to finish the session on a solidly positive note. Notably, the Nasdaq Composite Index marked its fourth consecutive session of gains.

Top-performing sectors included communication services, IT, IT services, and consumer discretionary stocks, with energy stocks experiencing a notable pullback.

US Index Performance On Wednesday

The S&P 500 Index is just 13.11 points away from a new closing high.

Analyst Color:

As the market languishes in the new year, an analyst presented data that suggests it may not be all gloom and doom this year. Commonwealth Financial Network Senior Equity Strategist Tom Logue said in a note that election years since 1957 have typically seen volatile first quarters. Less than half of the years have produced negative returns, while more than 68% of each election year saw a positive return during the second, third, and fourth quarters.

Every single election year since 1957 where the prior S&P 500 annual return was more than 20% saw a positive return, with an average annual return of 12.8% and a median return of 12.63%, Logue…