US Stock Futures Steady Post Nvidia Rebound; Rivian Soars 50% on VW Investment

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US Stock Futures Steady as Nvidia Rebound Boosts Tech Sector; Rivian and FedEx Shine in Extended Tra

Team FS

26/Jun/2024

Key Points:

Steady Futures: US stock futures remained steady after a tech-led rebound in the S&P 500 and Nasdaq Composite.
Rivian and FedEx Surge: Rivian surged nearly 50% on Volkswagen's $5 billion investment, while FedEx rose 14% on strong quarterly results.
Earnings Watch: Investors anticipate earnings reports from General Mills, Paychex, and Micron Technology, and the US PCE inflation data on Friday.

US stock futures held steady on Wednesday after a notable rebound in the technology sector led by Nvidia helped the S&P 500 and Nasdaq Composite snap a three-day losing streak. The stabilization in futures comes as investors digest recent gains and look ahead to crucial earnings reports and economic data.

Tech Sector Rebound

In regular trading on Tuesday, the S&P 500 gained 0.39% and the Nasdaq Composite surged 1.26%, while the Dow Jones Industrial Average fell 0.76%. These moves were largely driven by a significant rebound in technology stocks, with Nvidia rallying 6.8% after experiencing three days of heavy selling. This rebound was crucial in lifting the broader tech and artificial intelligence sectors.

Other mega-cap tech stocks also posted impressive gains:

Tesla: Up 2.6%
Meta Platforms: Up 2.3%
Alphabet: Up 2.7%

Rivian and FedEx Impress in Extended Trading

In extended trading, notable movements included:

Rivian Automotive: Surged nearly 50% after Volkswagen announced it would invest up to $5 billion in the electric vehicle company. This significant investment underscores VW's commitment to expanding its presence in the EV market.
FedEx: Jumped 14% following better-than-expected quarterly results and announced cost-cutting measures. The company's strong performance reassured investors about its strategic direction and operational efficiency.

Upcoming Earnings and Economic Data

Investors are now turning their attention to upcoming earnings reports from several key companies, which are expected to provide further insights into corporate health and economic conditions:

General Mills
Paychex
Micron Technology

Additionally, the US PCE inflation gauge, set to be released on Friday, is highly anticipated. This data will offer crucial insights into the inflationary pressures within the US economy and could significantly influence the Federal Reserve's future monetary policy decisions.

Market Sentiment

The recent rally in tech stocks and the positive developments from companies like Rivian and FedEx have injected a sense of optimism into the market. However, investors remain cautious as they navigate through a mix of corporate earnings reports and macroeconomic indicators.

Conclusion

The steadiness in US stock futures following the rebound in major tech stocks, coupled with significant gains in companies like Rivian and FedEx, sets the stage for a potentially dynamic trading environment. As investors eagerly await further earnings reports and the crucial PCE inflation data, the market is poised for continued volatility and opportunities.

Stay tuned to Finance Saathi for the latest updates and in-depth analysis on market trends and economic developments.

Also Read : BSE Sensex Surges 0.8% to New Record, Driven by Reliance and Bharti Airtel Gains

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