Traders May Make Another Attempt At Bargain Hunting
18 Abril 2024 - 10:14AM
IH Market News
The major U.S. index futures are currently pointing to a
modestly higher open on Thursday, with stocks likely to move back
to the upside after ending yesterday’s volatile session mostly
lower.
The upward momentum on Wall Street comes on the heels of
four-day losing streaks for the Nasdaq and S&P 500, which have
fallen to their lowest levels in almost two months.
Traders may once again look to pick up stocks at relatively
reduced levels following the recent weakness, although recent
bargain hunting efforts have been thwarted by ongoing concerns the
Federal Reserve will hold off on cutting interest rates until later
in the year.
Stocks fluctuated over the course of the trading session on
Wednesday before eventually ending the day mostly lower. The Nasdaq
and the S&P 500 extended their losing streaks to four days,
falling to their lowest closing levels in nearly two months.
The major averages all finished the day red, although the Dow
posted a relatively modest loss, edging down 45.66 points or 0.1
percent to 37,753.31. The S&P 500 slid 29.20 points or 0.6
percent to 5,022.21 and the Nasdaq tumbled 181.88 points or 1.2
percent to 15,683.37.
Weakness among technology stocks weighed on the markets, as
reflected by the notable slump by the tech-heavy Nasdaq.
Shares of Nvidia (NASDAQ:NVDA) came under pressure as the day
progressed, with the AI darling plunging by 3.9 percent to its
lowest closing level in well a month.
The drop by Nvidia came as semiconductor stocks broadly came
under pressure following disappointing first quarter sales by Dutch
chip equipment maker ASML (NASDAQ:ASML).
Reflecting the weakness in the sector, the Philadelphia
Semiconductor Index dove by 3.3 percent to a nearly two-month
closing low.
The lower close on Wall Street also came amid ongoing concerns
about the outlook for interest rates following Tuesday’s remarks by
Federal Reserve Chair Jerome Powell.
During a moderated discussion with Bank of Canada Governor Tiff
Macklem, Powell suggested rates are likely to remain higher for
longer amid a “lack of progress” toward reaching the central bank’s
inflation goal.
The Fed chief’s remarks came as recent data showing sticky
inflation along with continued economic strength have led to
reduced expectations of a rate cut in June.
According to CME Group’s FedWatch Tool, the chances of a 25
basis point rate cut in June have tumbled to 16.4 percent compared
to 55.2 percent just a week ago.
Airline stocks bucked the downtrend, however, with the NYSE Arca
Airline Index soaring by 3.8 percent after ending Tuesday’s session
at a two-month closing low.
United Airlines (NASDAQ:UAL) led the sector higher, skyrocketing
by 17.5 percent reporting a much narrower than expected first
quarter loss.
NVIDIA (NASDAQ:NVDA)
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