U.S. stock futures edged higher Sunday night, offering a reprieve from last week’s tech-led selloff. The S&P 500 suffered its steepest weekly decline since April as investors shifted from mega-cap growth stocks to more rate-sensitive sectors.
Futures tied to the broader market index rose 0.2%, while those tracking the Dow Jones Industrial Average and Nasdaq 100 added 0.1% and 0.4%, respectively.
Market attention remains divided between economic indicators and political developments. Traders are increasingly confident in the Federal Reserve’s path to interest rate cuts, with a 93% chance of a reduction in September. This outlook has fueled a shift away from tech giants toward sectors such as small caps and industrials, which should benefit from lower borrowing costs.
Meanwhile, President Joe Biden’s unexpected resignation and his endorsement of Vice President Kamala Harris have introduced a new dynamic to the political landscape. While initial market reactions appear muted, the potential implications for economic policy and investor sentiment are being closely watched.
Next week will bring fresh insights into the corporate earnings landscape, with Verizon set to report quarterly results on Monday. Economic data releases are expected to be light, allowing investors to focus on corporate performance and interest rate expectations.
As the market digests the aftermath of last week’s volatility, traders will be looking for catalysts that can drive the next leg of the market’s journey.
