Market Analysis

US stock futures climb after three days of losses driven by Fed and inflation concerns

Amos Simanungkalit · 27 Mar6.4K Views

U.S. stock index futures showed signs of recovery in the evening session on Tuesday, indicating a potential bounce back on Wall Street following three consecutive days of losses. The uncertainty surrounding inflation and the Federal Reserve's next moves had kept investors cautious.

However, any gains were somewhat limited, as investors seemed to be waiting on the sidelines for key inflation data later in the week, along with speeches from top Fed officials.

S&P 500 Futures edged up 0.2% to reach 5,274.0 points, while Nasdaq 100 Futures also increased by 0.2% to 18,485.0 points, as of 19:40 ET (23:40 GMT). Dow Jones Futures saw a similar rise of 0.2%, reaching 39,758.0 points.

The focus remained on upcoming PCE inflation figures, which are closely watched by the Fed, due on Friday, coinciding with the Good Friday holiday when markets will be closed. Additionally, speeches by Fed Chair Jerome Powell and committee member Mary Daly on Friday are anticipated to provide further insight into potential interest rate cuts.

Despite a recent surge driven by artificial intelligence in the technology sector, some stocks experienced a pullback, notably NVIDIA Corporation, which dropped 2.6% from its near record highs during Tuesday's trading. However, it stabilized in aftermarket trading.

The overall sentiment on Wall Street was cautious, with traders awaiting clearer signals on inflation and interest rates.

On Tuesday, the S&P 500 fell by 0.3% to 5,203.58 points, while the NASDAQ Composite closed down by 0.4% at 16,315.70 points, and the Dow Jones Industrial Average slipped by 0.1% to 39,282.33 points, although all three indexes remained close to recent record highs.

In the aftermarket, Merck & Company Inc saw a notable increase of nearly 5% to a potential record high after receiving approval from the U.S. Food and Drug Administration for its treatment of a rare lung disease.

Conversely, GameStop Corp experienced a significant decline of up to 16% after its quarterly earnings fell short of estimates. The company also announced job cuts in an effort to reduce costs amid ongoing challenges from digital platforms and declining consumer spending.

Krispy Kreme Inc continued its upward trend, rising by 3.8% during the session and extending its nearly 40% spike, following news of a deal with McDonald’s Corporation to sell its doughnuts through the fast-food chain.

Shockwave Medical Inc also saw gains, rising by 1.6% after a previous 10% jump, fueled by reports of potential acquisition talks with Johnson & Johnson.