Key Points
- Mixed stock market activity: S&P 500 and Nasdaq fall, Dow rises slightly.
- Robinhood’s stock surges 10% post-report of assets increase, while Fisker plummets 46% amid bankruptcy concerns.
- Key economic reports ahead: Producer Price Index, Federal Reserve meeting, and jobless claims.
- The technology sector faces a sell-off, contrasting with the energy and materials sectors’ strength.
Wednesday night’s financial data reveals subtle yet noteworthy movements in stock futures, setting the tone for market expectations. The Dow Jones Industrial Average futures saw a slight increase of 32 points, barely under 0.1%. S&P 500 and Nasdaq 100 futures experienced marginal advances of 0.1% and 0.2%, respectively. These figures reflect a cautious optimism among investors, hinting at a potential stabilising market environment.
The after-hours trading session brought significant developments, particularly for Robinhood and Fisker. Robinhood’s shares soared by 10% following a report of a 16% increase in assets under custody from the previous month. Conversely, Fisker’s shares faced a steep decline of 46% after The Wall Street Journal disclosed the company’s consultation with restructuring advisors, sparking bankruptcy preparation rumours.
Stock Futures: Dow Up 0.10%, S&P Down 0.19%
The day’s market activity presented a mixed bag. The S&P 500 and Nasdaq Composite experienced declines of 0.19% and 0.54%, respectively, while the Dow Jones managed a modest increase of 0.10%. The technology sector notably underperformed, with Nvidia’s stock dropping by 1.1%. This sector’s movement is crucial for understanding broader market trends, especially as tech giants like Alphabet and Amazon buck the trend, registering gains among the Magnificent Seven stocks.
PPI Expected to Grow 0.3%, Fed Meeting Eyes on Rate Decision
Investors eagerly await the release of February’s Producer Price Index (PPI), anticipated to grow by 0.3% overall or 0.2% excluding food and energy. This data, expected Thursday morning, is pivotal in gauging inflationary pressures and shaping Federal Reserve policy decisions. With the Fed’s next meeting scheduled for March 19-20, market participants are on high alert for any signals regarding interest rate adjustments.
Additionally, investors anticipate weekly jobless claims and retail sales data on Thursday after the PPI report, signalling market trends. These figures, crucial for evaluating the health of the U.S. economy and consumer behaviour, impact market dynamics and investor sentiment.
Tech Sells Off, Energy and Materials Lead
Wednesday witnessed a sell-off in the technology sector, contrasted by the energy and materials sectors leading gains across seven of the eleven S&P sectors. Challenges for giants like Apple and Tesla, with falling sales in China and missing AI incentives, are significantly highlighted. Moreover, concerns loom over the potential impacts of a new bill that could lead to a TikTok ban, underscoring the tech sector’s volatility and the market’s sensitivity to regulatory changes.
