Nasdaq Futures Have Changed Little for Big Tech’s Profits

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Stock futures had changed little in the early hours of Tuesday morning after shares rose in the afternoon and ahead of Big Tech’s gains.

Futures linked to the technology-focused Nasdaq index fell 0.13%. The Dow Jones Industrial Average futures and S&P 500 futures had changed little.

During regular trading Monday, the Nasdaq Composite rose 1.3%. The Dow rose 0.7%, having lost 500 points from earlier in the day, and the S&P 500 gained 0.6%.

The moves came as technology names such as Microsoft, Alphabet and Meta Platforms rally in the afternoon amid falling interest rates and ahead of an intense week of gains for megacap tech stocks. Twitter also jumped after the board accepted Tesla CEO Elon Musk’s offer to take it private.

The rebound was welcomed by investors after stocks ended on a sour note last week, with the Dow falling to its fourth straight week and the S&P and Nasdaq hitting a three-week losing streak on Friday. The tech-heavy Nasdaq is trying to break out of bear market territory, standing 19.8% off its record.

Whether this is a bottom remains to be seen. Edward Moya, senior market analyst at Oanda, told CNBC that there is still a lot of optimism about the US economy and said he expects a rally rally from here.

“A third of the S&P reports” [earnings] this week, and you’ll probably see a lot of the same: lots of top- and bottom-line beats. Companies are going to talk about margin pressure and passing on price increases to consumers, but they are still going to emphasize that there is still general optimism about the economy.”

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Between the continuation of gains and a quiet period from the Federal Reserve, there will likely be some relief in the market, Moya added.

“We won’t get nervous about the Fed tightening again because we won’t hear much more about it until the May meeting,” he said.

Market bull Tom Lee, head of research at Fundstrat Global Advisors, said that while he had expected a “treacherous” first half of the year, the market was worse than he expected, with inflation deteriorating against market expectations. Still, he remains optimistic.

“When the bond market is screaming for Fed to be a little tighter, it’s hard for stocks to hold up and I think that’s what we’re going through right now, but I don’t think it means we should be selling stocks here too,” he said on CNBC’s “Closing Bell: Overtime” Monday.

“Markets just want to have an idea of ​​when this could end,” he added. “If inflation doesn’t hit some kind of peak that is worrying for the markets, but I also don’t think it’s certain that inflation will remain an issue even into the second half.”

Tech earnings begin Tuesday after the bell with Alphabet and Microsoft. Meta, Amazon and Apple will report later in the week. UPS and 3M must also report tomorrow morning.

In economic data, investors expect new data on new home sales and consumer confidence Tuesday morning.



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