US Stock Indexes

US Stock Index Futures Struggling in Pre-Market Trade Amid Delta Variant Concerns, Fed Taper Discussions

The major U.S. stock index futures are trading lower early Friday shortly before the cash market opening as investors brace for another day of volatility following yesterday’s small gain. On Thursday, the benchmark S&P 500 Index snapped a two-day losing streak while the blue chip Dow Jones Industrial Average finished lower for a third-straight session. The tech heavy NASDAQ Composite closed slightly higher.

The divergence between the U.S. stock indexes suggests investor indecision and impending volatility, which may be the reason why all three majors are on track to close lower for the week. The S&P 500 and the Dow are both on track to post their worst weekly performances since June, while the NASDAQ is set to see its worst week since May.

At 08:24, September E-mini S&P 500 Index futures are trading 4374.50, down 27.00 or -0.61%. September E-mini Dow Jones Industrial Average futures are at 34610, down 208 or -0.60% and September E-mini NASDAQ-100 Index futures are trading 14866.25, down 61.75 or -0.41%.

Thursday’s Recap

Wall Street indexes were supported by gains in defensive and heavyweight technology stocks on Thursday, as investors fretted over when the Federal Reserve could begin tapering its massive stimulus program, according to Reuters.

Meanwhile, the Dow Jones Industrial Average retreated on losses in growth-sensitive sectors, while gains in major technology stocks kept the NASDAQ in positive territory.

Sector Performances Mixed

Defensive sectors such as utilities and consumer staples were the best performers, while technology rose 1.1%. The real estate sector also outperformed.

Financials and industrials were among the sectors in the red, falling about 0.8%.

The S&P energy sector was the worst performer among its peers with a 2.8% tumble, as oil prices hit a three-month low, while the materials sector dropped 0.7% after copper prices tumbled, Reuters reported.

Stock-Related News

U.S. department store chains Macy’s Inc and Kohl’s Corp are leaning on a strong back-to-school season to sustain a sales recovery fueled by shoppers splurging on perfumes, shoes and dresses.

In company news, shares of Macy’s and Kohl’s rose 19.6% and 7.3%, respectively, following increased annual sales forecasts.

Shares of Nvidia Corp rose 4%. The chip company forecast third-quarter revenue above Wall Street expectations late on Wednesday as it benefits from a boom in demand.

The Internals

Declining issues outnumbered advancing ones on the NYSE by a 2.59-to-1 ratio; on NASDAQ, a 2.43-to-1 ratio favored decliners.

The S&P 500 posted 28 new 52-week highs and 3 new lows; the NASDAQ Composite recorded 35 new highs and 274 new lows.

About 10.3 billion shares changed hands in U.S. exchanges, above the 9.3 billion daily average over the last 20 sessions, Reuters reported.

For a look at all of today’s economic events, check out our economic calendar.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.