After resiliently resisting selling pressure, the market could be in for some weakness on Wednesday as traders position themselves defensively ahead of the key Main Street catalysts for the rest of the week. The index futures are modestly lower early Wednesday. Traders may not have much to look forward to in terms of data as merely the routine weekly mortgage application data and new homes sales report for August are due for the session.
It would be interesting to see if the week mortgage applications volume data will receive a boost from the recent pullback in mortgage rates ahead and amid the Fed rate cut. Micron Technology Inc.’s (NASDAQ:MU) earnings report is in the spotlight as traders strive to gauge artificial intelligence technology-related demand.
Futures
Performance (+/-)
Nasdaq 100
-0.20%
S&P 500
-0.09%
Dow
-0.05%
R2K
-0.03%
In premarket trading on Wednesday, the SPDR S&P 500 ETF Trust (NYSE:SPY) fell 0.07% to $570.92 and the Invesco QQQ ETF (NASDAQ:QQQ) moved down 0.19% to $484.46, according to Benzinga Pro data.
Cues From Last Session:
U.S. stocks ended Tuesday’s session higher yet again despite some nervous moments in early trading on the back of the September consumer confidence reading that unexpectedly fell. Following the data, Jamie Cox, Managing Partner at Harris Financial Group, said, “It’s never good to see consumer confidence fall this much.”
The strategist attributed the weak consumer confidence to concerns about the implications of the upcoming election, the increasing conflict around the world, and the stubbornly high cost of food and credit. The 50 basis-point Fed funds rate cut last week seemed more correct in light of these data, he added.
The major indices opened higher but reversed course after the data. After hitting a bottom in late-morning trading, the tech-heavy Nasdaq Composite and ...
