Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading on February 1, 2023 in New York City.
Michael M. Santiago | fake images
S&P 500 futures were lower on Wednesday as traders digested a broad market rally in the previous session.
S&P 500 and Nasdaq-100 Futures they decreased 0.2% and 0.5%, respectively. Dow Jones Industrial Average Futures they changed little.
Chip stocks fell pre-market after The Wall Street Journal reported that the United States was considering new export restrictions to China. nvidia shares lost 4%, while AMD fell more than 3%. the iShares Semiconductor ETF (SOXX) fell 1.5%.
He Dow Tuesday posted its first positive session in seven, with the index closing 0.63% higher. Meanwhile, the S&P 500 and the Nasdaq Composite They were up more than 1% each, buoyed by a resurgence in tech stocks after last week’s sell-off.
Investors are preparing to close out the Nasdaq’s best first half in 40 years as they ride a wave of optimism around artificial intelligence that has significantly boosted a handful of large-cap tech stocks. The S&P 500 and Nasdaq Composite are higher this year by 14% and 29%.
“We’re sequencing this series of higher highs and higher lows. I wouldn’t call it a momentum market, maybe we’re starting to shift towards that a little bit, but it’s certainly a trending market,” Jeff deGraaf, president of Renaissance Macro Research, said. Tuesday on CNBC’s “Closing Bell.” He pointed to leadership in cyclical sectors like technology and industrials, saying they are positive indicators.
“Those are pretty good, bulletproof indications that you’re in a bull market,” deGraaf added.
Federal Reserve Chairman Jerome Powell will speak Wednesday morning before a policy panel at the European Central Bank Forum on Central Banking in Sintra, Portugal. The event will be moderated by CNBC’s Sara Eisen and will begin at 9:30 am ET.
Powell will be joined by Bank of England Governor Andrew Bailey, European Central Bank President Christine Lagarde and Bank of Japan Governor Kazuo Ueda. Markets will be looking for more clues from Powell on the future of US economic policy. The Fed chair recently said he expects additional interest rate hikes to combat inflation, though he believes the central bank can do so at “a more moderate pace.”
— CNBC’s Jeff Cox contributed to this report.
Correction: An earlier version of this story incorrectly stated the magnitude of the Dow’s move on Tuesday.