U.S. stock futures indicate a positive opening on Wednesday, buoyed by strong earnings reports from Netflix, Inc. (NASDAQ:NFLX) and semiconductor equipment maker ASML Holding N.V. (NASDAQ:ASML). Investors are eagerly awaiting Tesla, Inc.‘s (NASDAQ:TSLA) fourth-quarter results, which are expected to take center stage. Additionally, private sector activity data is set to be released shortly after the market opens.
Wednesday’s announcement of a stimulatory measure by the Chinese central bank has the potential to extend the strength of U.S.-listed Chinese stocks.
Cues From Tuesday’s Trading:
Major indices closed with mixed results. The Dow faced early pressure from negative earnings reports by 3M Co. (NYSE:MMM) and Johnson & Johnson (NYSE:JNJ), leading to a lower start. Conversely, the Nasdaq and S&P 500 indices opened positively. The Dow, however, hit the day’s low in early afternoon trading before partially recovering losses. It concluded the session lower, breaking a three-session winning streak. In contrast, the Nasdaq and S&P 500, after dipping below the unchanged line, rebounded in the afternoon, closing modestly higher.
Communication services and consumer staple stocks emerged as notable gainers during the session.
US Index Performance On Tuesday
| Index | Performance (+/-) | Value |
| Nasdaq Composite | +0.43% | 15,425.94 |
| S&P 500 Index | +0.29% | 4,864.60 |
| Dow Industrials | -0.25% | 37,905.45 |
| Russell 2000 | -0.36% | 1,976.27 |
Analyst Color:
The Fed rate moves may not be in isolation, according to Wharton professor Jeremy Siegel. “If the economy is strong and the Fed does not cut rates as much as some expect — earnings growth may end up being supportive for the market,” the economist said in his weekly commentary for WisdomTree.
The market strength despite the high-interest rate environment is due to the continued strong performance in the semiconductor companies, primarily due to the excitement over the impact of artificial intelligence, Siegel said. “For the full year, I still expect greater participation in the rally from a broader cross-section of the market, but sentiment still favors the high quality, big tech stocks,” he added.
Futures Today
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