NEW YORK – Wall Street is cautiously watching as S&P 500 futures remained flat on Tuesday, following a sell-off triggered by concerns over higher bond yields and speculations about the Federal Reserve’s stance on rate cuts.
Futures linked to the broad market index experienced a slight 0.04% drop, while Dow Jones Industrial Average futures declined by 0.2%. Meanwhile, Nasdaq-100 futures saw a modest 0.1% increase.
The market saw notable movement from tech companies as Palantir Technologies witnessed an 18% surge after reporting a revenue beat in the fourth quarter. Similarly, NXP Semiconductors experienced a more than 2% rise in their stock value due to better-than-expected results.
Monday’s downturn in the S&P 500, which pulled back from a record high, was attributed to Federal Reserve Chair Jerome Powell’s televised comments on “60 Minutes” reaffirming the unlikeliness of a rate cut at the central bank’s March meeting. The 10-year Treasury yield subsequently rose about 13 points on Monday to 4.16%, further fueled by fresh economic data.
Bob Doll, CEO of Crossmark Global Investments, aired concerns regarding the market’s ability to maintain its recent rally, citing worries about high stock valuations and potential disappointment from the Fed’s stance on rate cuts and earnings growth.
Looking ahead, Wall Street is anticipating the New York Fed’s household debt and credit report for the fourth quarter, along with commentary from several central bank speakers, including Cleveland Fed President Loretta Mester and Boston Fed President Susan Collins. Additionally, the halfway point of the earnings season will feature reports from companies like Eli Lilly, Spirit AeroSystems, and DuPont, followed by Amgen, Chipotle Mexican Grill, and Ford.