Stock market today- Stock futures stay flat following S&P 500’s longest win streak since November

Stock market today– On Tuesday morning, U.S. stock futures showed little movement following notable gains in major indices. The S&P 500 and the Nasdaq Composite each recorded their longest winning streaks of the year, with the S&P 500 marking eight consecutive positive sessions, a streak not seen since November 2023. Similarly, the Nasdaq Composite’s recent performance was its longest winning streak since December 2023.

Market Futures Overview

Futures for the Dow Jones Industrial Average experienced a slight decline of 5 points, or 0.01%. Meanwhile, futures tied to the S&P 500 hovered around the flatline, showing minimal change. On the other hand, Nasdaq 100 futures saw a modest increase of 0.14%. This stability in futures follows a significant rise in the major stock indices.

Corporate Earnings and Market Reactions

In after-hours trading, Palo Alto Networks, a cybersecurity firm, saw its stock price increase by 2%. This rise followed the company’s impressive earnings report for the fiscal fourth quarter, where it surpassed both revenue and earnings expectations. Additionally, Palo Alto Networks provided guidance for adjusted earnings that exceeded market forecasts, contributing to the positive momentum.

The gains for the major averages come after a strong trading day for the indices. The S&P 500 rose nearly 1%, while the Nasdaq added 1.4%. This upward movement is significant as both indices recorded their eighth consecutive day of positive performance. Such a streak is notable, especially considering it’s the longest for the S&P 500 since November 2023 and the longest for the Nasdaq since December 2023.

Volatility and Economic Data

The recent positive performance of the major indices contrasts sharply with the heightened volatility observed earlier in the month. The CBOE Volatility Index (VIX), which measures market volatility, has decreased to 14.7. This drop is a stark reversal from its peak of over 65 on August 5, which was a day marked by significant declines in the S&P 500 amidst a global market sell-off.

The reduction in volatility has been supported by strong retail sales data and a favorable inflation report released last week. These economic indicators have alleviated some investor concerns regarding the economy, contributing to the recent bullish sentiment in the market.

Upcoming Federal Reserve Meeting

Looking ahead, investors are gearing up for the Federal Reserve’s annual Jackson Hole Economic Symposium later this week. Fed Chair Jerome Powell is scheduled to speak on Friday, and market participants are keenly anticipating his remarks. The focus will be on any indications of future monetary policy adjustments and what the Fed’s plans might be for its September meeting.

Sam Stovall, Chief Investment Strategist at CFRA Research, noted that the Fed aims to convey that it is effectively managing economic conditions without being overly aggressive. The real question is not just the timing, but the magnitude of potential rate cuts, Stovall added. Current Fed futures pricing, as indicated by the CME FedWatch Tool, suggests a roughly 76% probability that central bank policymakers will lower rates by 25 basis points in September.

Earnings Season: What to Watch

In addition to the Federal Reserve’s forthcoming decisions, investors will also be keeping an eye on earnings reports. Notably, home improvement retailer Lowe’s is expected to release its second-quarter results soon. This report will be closely watched as it could provide further insights into consumer spending and economic trends.

As the market continues to react to both macroeconomic data and corporate earnings, the coming days will be critical for investors. The interplay between economic indicators, Federal Reserve policies, and corporate performance will likely shape market movements and sentiment in the near term.