On Tuesday, S&P 500 futures remained close to unchanged levels following a market sell-off driven by increased bond yields and concerns that the Federal Reserve might not slash rates as much as expected by Wall Street. Futures linked to the broad market index dropped only 0.04%. Meanwhile, Dow Jones Industrial Average futures saw a 0.2% decline of 79 points, with Nasdaq-100 futures showing a 0.1% increase. Palantir Technologies shares surged by 18% after the company exceeded revenue expectations in the fourth quarter. NXP Semiconductors also rose by over 2% due to better-than-expected results.
Monday saw the S&P 500 experience a 0.32% loss, retracting from its recent record high. This dip in stocks followed Federal Reserve Chair Jerome Powell’s statement that a rate cut at the central bank’s March meeting is improbable. His remarks, aired on “60 Minutes” Sunday night, led to a 13-point rise in the 10-year Treasury yield to 4.16%. Additionally, fresh economic data contributed to the increase in yields. Bob Doll, CEO of Crossmark Global Investments, expressed apprehensions about the market’s ability to maintain its recent upturn. “There’s a lot of momentum, but I’m worried about [the S&P 500 at] 20 times earnings, and that the Fed’s not going to live up to [rate] cut expectations. And I don’t see how we get double-digit earnings growth,” Doll stated during CNBC’s “Closing Bell: Overtime” on Monday. “I put all that together — I’m invested but I’m nervous,” he added.
On the economic front, Wall Street will be attentively awaiting the New York Fed’s household debt and credit report for the fourth quarter. Several central bank speakers are slated to give comments, including Cleveland Fed President Loretta Mester and Boston Fed President Susan Collins. This Tuesday marks approximately the halfway point of the earnings season. Eli Lilly, Boeing supplier Spirit AeroSystems, and DuPont are all expected to report their quarterly results in the morning, followed by Amgen, Chipotle Mexican Grill, and Ford in the evening.
