New York – Dow Jones futures showed signs of a potential market rebound on Tuesday morning, offering hope to investors amid recent downward trends in the stock market. Despite the positive start, Tesla faced further losses in today’s trading session. The electric vehicle company’s stock sank by 2.3% on Tuesday morning, threatening to extend the losses from the previous day.
The Dow Jones futures rose by 0.6% in early trading, following significant losses on Monday, marking the sixth consecutive session of declines for blue-chip stocks. With the Dow losing ground in 10 out of the last 11 trading days and dropping more than 5% from its peak on March 21, it currently sits well below its 50-day moving average.
Meanwhile, S&P 500 futures saw a 0.1% increase compared to fair value, and Nasdaq 100 futures in the tech sector gained less than 0.1%, following two consecutive sessions in the red where both indexes fell below their 50-day moving averages amidst Monday’s sell-off.
In other market news, the 10-year Treasury yield edged higher to 4.65% on Tuesday morning, while oil prices dipped slightly, with West Texas Intermediate futures trading around $84.90 per barrel. Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF increased by 0.1%, and the SPDR S&P 500 ETF rose by 0.2%.
Tesla confirmed on Monday that it would be cutting over 10% of its global workforce, amounting to more than 14,000 jobs, as the company faces challenges such as slowing demand and overcapacity at its production facilities. As a result, Tesla shares neared new multi-month lows on Monday, with the stock trading over 45% below its 52-week high.
Looking ahead, Federal Reserve Chairman Jerome Powell is scheduled to participate in a moderated discussion on the Canadian economy with Tiff Macklem, Governor of the Bank of Canada, on Tuesday afternoon at the Washington, D.C. Forum. In terms of earnings, key movers in the market on Tuesday included Bank of America, Johnson & Johnson, Morgan Stanley, and UnitedHealth.
On the market front, the Nasdaq composite and the S&P 500 closed below their 50-day moving averages for the first time since early November, while the Dow Jones Industrial Average dropped 0.6% on Monday, nearly 1.7% from its session high. This shift in trends highlights the changing dynamics in the market and the need for investors to stay informed and adapt to evolving conditions.
In a separate development, Artificial Intelligence player Broadcom is building a short consolidation with a buy point of 1,438.17, DraftKings moved below its buy point of 46.52, and ServiceNow gave up its 50-day line during Monday’s decline. These movements underscore the volatility in the current market environment and the importance of strategic decision-making for investors.
As the market continues to fluctuate, it is essential for investors to stay updated on market trends and analyze potential opportunities for investment in order to navigate the ever-changing landscape of the stock market.