Market Analysis

U.S. stock index futures remained stable during Tuesday's evening trading after Nvidia's strong performance lifted Wall Street to record highs. Attention has now shifted to upcoming signals from the Federal Reserve on interest rates.

Both the S&P 500 and Dow Jones Industrial Average hit record highs on Tuesday, bolstered by Nvidia Corporation (NASDAQ: NVDA) following reports that CEO Jensen Huang had completed stock sales under a trading plan. These indexes were already near record levels after the Fed's significant interest rate cut last week.

This week, investors are closely monitoring speeches from several Federal Reserve officials and crucial inflation data for further insights into potential rate cuts.

As of 19:21 ET (23:21 GMT), S&P 500 Futures edged up slightly to 5,794.0 points, while Nasdaq 100 Futures rose 0.1% to 20,190.25 points. Meanwhile, Dow Jones Futures dipped 0.1% to 42,549.0 points.

Powell Speech, PCE Data in Focus Several Fed officials, including Chair Jerome Powell, are set to speak in the coming days, with Powell’s address on Thursday expected to provide more guidance on the Fed’s plans for further interest rate cuts.

Last week, the Fed reduced rates by 50 basis points, marking the start of an easing cycle that could lower rates by up to 125 basis points this year, according to analysts.

However, some Fed officials cautioned earlier this week that future rate cuts might be smaller, emphasizing a data-driven approach to monetary policy decisions.

Despite these cautions, Wall Street surged to record levels following the Fed’s initial cut, with widespread gains across the market.

The Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation measure, is due on Friday and will likely influence future rate decisions.

Nvidia Eases After Strong Session Nvidia, a key player in the artificial intelligence sector, steadied in aftermarket trading following a 3% jump on Tuesday.

The stock’s gains were driven by reports that CEO Jensen Huang had completed his sale of over $700 million worth of Nvidia shares under a trading plan. These sales had previously shaken investor confidence, especially after the company's quarterly results fell short of some expectations, and it reported delays in its advanced AI chips.

Nvidia's rise on Tuesday helped the S&P 500 climb 0.3% to a new record high of 5,732.93 points. The NASDAQ Composite also advanced 0.6% to 18,076.10 points, while the Dow Jones Industrial Average increased 0.2% to a record 42,208.22 points.

Paraphrasing text from "Investing" all rights reserved by the original author.