Positive Reaction To Earnings News May Lead To Strength On Wall Street
30 Janeiro 2025 - 11:03AM
IH Market News
The major U.S. index futures are currently
pointing to a higher open on Thursday, with stocks likely to move
back to the upside after ending yesterday’s trading mostly
lower.
Stocks may benefit from a positive reaction to earnings news
from big-name companies such as IBM Corp. (NYSE:IBM), Meta
Platforms (NASDAQ:META) and Tesla (NASDAQ:TSLA).
Shares of IBM are surging by 9.5 percent in pre-market trading
after the tech giant reported fourth quarter earnings that exceeded
analyst estimates.
Facebook parent Meta is also seeing notable pre-market strength
after reporting fourth quarter results that beat estimates on both
the top and bottom lines.
Shares of Tesla may also move to the upside even though the
electric vehicle maker reported fourth quarter earnings that missed
expectations.
On the other hand, shares of Microsoft (NASDAQ:MSFT) are
plunging by 4.5 percent in pre-market trading after the software
giant reported better than expected fiscal second quarter results
but provided disappointing revenue guidance for the current
quarter.
Stocks moved mostly lower over the course of the trading day on
Wednesday, partly offsetting the notable rebound seen during
Tuesday’s session. The major averages climbed off their worst
levels in late-day trading but still closed in negative
territory.
The Nasdaq slid 101.26 points or 0.5 percent to 19,632.32, the
S&P 500 fell 28.39 points or 0.5 percent to 6,039.31 and the
Dow dipped 136.83 points or 0.3 percent to 44,713.52.
The lower close on Wall Street came after the
Federal Reserve announced its widely expected decision to leave
interest rates unchanged following its first monetary policy
meeting of 2025.
The Fed said it decided to maintain the target range for the
federal funds rate at 4.25 to 4.50 percent in support of its dual
goals of maximum employment and inflation at the rate of 2 percent
over the longer run.
The decision to leave rates unchanged came as the Fed noted
inflation remains “somewhat elevated” and reiterated its strong
commitment to returning inflation to its 2 percent objective.
Notably, the Fed removed a phrase included in previous
statements indicating that inflation has “made progress” towards it
target.
The Fed’s latest decision comes after it lowered rates by a
total of 100 basis points or 1.0 percentage point over the three
previous meetings, beginning with a 50 basis point cut in
September.
The central bank’s next monetary policy meeting is scheduled for
March 18-19, when Fed officials will also provide their latest
projections for rates, inflation and the economy.
CME Group’s FedWatch Tool is currently indicating a 77.6 percent
chance the Fed will once again leave rates unchanged but a 22.3
percent chance of a quarter point rate cut.
A slump by shares of Nvidia (NASDAQ:NVDA) also weighed on the
markets, with the AI darling and market leader tumbling by 4.0
percent after surging by 8.8 percent on Tuesday.
Nvidia came under pressure after a report from Bloomberg said
Trump administration officials are exploring additional curbs on
the sale of the company’s chips to China.
Interest rate-sensitive housing stocks showed a significant move
to the downside, dragging the Philadelphia Housing Sector Index
down by 2.2 percent.
Considerable weakness was also visible among telecom stocks, as
reflected by the 1.5 percent loss posted by the NYSE Arca North
American Telecom Index.
Software and commercial real estate stocks also saw notable
weakness on the day, while airline and computer hardware stocks
moved to the upside.
U.S Index Futures Trading – Taking the first steps with Plus500
Beginning your futures trading journey requires careful
preparation. Start by opening a Plus500
account with their minimum $100 deposit — qualifying
for their initial bonus program.
Spend time in the demo environment, understanding how futures
contracts behave and how the platform’s tools can support your
strategy.
As you develop confidence, consider starting with micro
contracts, which offer smaller position sizes ideal for learning
position management.
Plus500’s educational resources can guide you through
this process, helping you understand both basic concepts
and advanced trading strategies.
Start your futures trading journey with Plus500
today
Trading futures carries substantial risk of loss and is not
suitable for all investors. Plus500US Financial Services LLC is
registered with the CFTC and member of the NFA. Past performance
does not guarantee future results. Bonus terms and conditions
apply.
NVIDIA (NASDAQ:NVDA)
Gráfico Histórico do Ativo
De Jan 2025 até Fev 2025
NVIDIA (NASDAQ:NVDA)
Gráfico Histórico do Ativo
De Fev 2024 até Fev 2025