The U.S. stock index futures remained largely unchanged in evening trading on Tuesday, with a focus on the persistent strength of technology stocks. This stability comes ahead of the highly anticipated earnings report from Nvidia, a market favorite that has been driving Wall Street towards new highs. However, investors are maintaining a cautious stance as they await more information on interest rates, particularly from the minutes of the Federal Reserve's late-April meeting scheduled for release on Wednesday.
The S&P 500 Futures held steady at 5,346.50 points, whereas Nasdaq 100 Futures experienced a slight increase to 18,811.75 points by 19:13 ET. Additionally, Dow Jones Futures also saw a marginal increase to 40,016.00 points. The upcoming release of the Fed minutes has investors on edge, given recent signals from the central bank warning about sticky inflation. While the Fed maintained interest rates during the meeting, there have been discussions about potential rate cuts later this year.
Despite the possibility of rate cuts, some Fed officials are advocating for more certainty in inflation trends before making any decisions. They have downplayed the likelihood of rate hikes in the near future, emphasizing the need for a cautious approach. The market is closely watching for any clarifications or adjustments in the Fed's stance, as more officials are scheduled to speak in the coming days.
On Tuesday, Wall Street indexes saw modest gains primarily driven by the performance of the technology sector. Investor interest in technology stocks intensified in anticipation of Nvidia's earnings report. As a leader in AI technology, Nvidia is expected to report significant growth in earnings due to increased demand in the industry. The company's advanced AI chips have positioned it as a key player in the market, attracting attention from major tech companies investing in AI technologies.
The S&P 500 closed at a record high of 5,321.41 points, marking a 0.3% increase, while the NASDAQ Composite also reached a record high of 16,832.62 points with a 0.2% rise. The positive performance of technology stocks has contributed to the overall market optimism, as investors eagerly await Nvidia's earnings report for further insights into the industry's growth potential. Overall, the stock market reflects a sense of cautious optimism amidst economic uncertainties and evolving Federal Reserve policies.