In a slight overnight dip, Dow Jones futures, along with S&P 500 futures and Nasdaq futures, fell. The stock market rally took a hit on Wednesday following a strong CPI inflation report. Nvidia, a key player in the market rally, saw a rebound, but weaknesses were exposed in small caps and key ETFs. Treasury yields surged after the inflation report and a weak Treasury auction, with Fed minutes from the March meeting indicating expectations for rate cuts this year. Investors are now eyeing a potential easing in September, with a slim chance of no rate cuts in 2024.
Nvidia stock and chipmaker Taiwan Semiconductor saw gains after strong sales reports, while recent IPO Astera Labs also made a jump. Despite some strength in stocks like Nutanix, Axon Enterprise, and Microsoft, Tesla saw a retreat from resistance levels. Economic data on the producer price index and weekly jobless claims will be released on Thursday.
In the current market climate, Dow Jones futures fell slightly, as did S&P 500 futures and Nasdaq 100 futures. The stock market rally faced significant losses on Wednesday, with key indexes like the Dow Jones Industrial Average and the S&P 500 falling below key moving averages. The Russell 2000 and various ETFs also broke important support levels. Despite some strong performances from leaders like Nvidia, caution is advised for new buys in the current market environment.