The market mood may continue to be lackluster, with index futures indicating a mixed opening on Wednesday. The potential approval of a spot Bitcoin (CRYPTO: BTC) exchange-traded fund is the major event traders are likely anticipating, and a green light from the SEC could spark a rally in both crypto and crypto-linked stocks. However, traders might opt to remain on the sidelines ahead of Thursday’s inflation data, seeking confirmation of the downward trajectory in prices. Pre-announcements may flow in, impacting both individual stocks and entire sectors.
Cues From Tuesday’s Trading:
U.S. stocks mostly closed lower on Tuesday as traders opted to stay on the sidelines in anticipation of the week’s inflation data. The upward bounce in bond yields also exerted downward pressure on equities. The Dow Industrials remained below the unchanged line for the entire session, and the S&P 500 also traded mostly in the red, although it finished off the session lows.
The tech-heavy Nasdaq Composite Index, despite a weak start, reduced its losses throughout the morning, staying mostly above the flat line in the afternoon before ending slightly higher.
Energy, real estate, utility, material, and financial stocks came under selling pressure on Tuesday.
US Index Performance On Tuesday
| Index | Performance (+/-) | Value |
| Nasdaq Composite | +0.09% | 14,857.71 |
| S&P 500 Index | -0.15% | 4,756.50 |
| Dow Industrials | -0.42% | 37,525.16 |
| Russell 2000 | -1.05% | 1,968.04 |
Analyst Color:
Carson Group’s Ryan Detrick said in a recent note that he remains bullish and expects stock prices to grind higher in 2024. The analyst, however, sees potential for some weakness in early 2023. “This weakness during a normally bullish time of the year has our attention, but after a 9-week win streak closing out 2023 (the longest since 2004), the S&P 500 was likely due for a break,” the analyst said.
“The massive breadth thrusts we saw late last year, a healthy economic backdrop, and the pivot to a more dovish Fed still have us in the camp that better times are coming,” he added.
Futures Today
Futures Performance On Wednesday
| Futures | Performance (+/-) |
| Nasdaq 100 | +0.19% |
| S&P 500 | -0.01% |
| Dow | -0.08% |
| R2K | -0.07% |
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