U.S. stock futures rose in evening trading on Tuesday, signaling some recovery on Wall Street after stocks posted three straight days of losses amid uncertainty over inflation and the Federal Reserve. But gains were largely limited, with Wall Street set to remain on a firm footing ahead of key inflation figures later this week and speeches from top Fed officials.
S&P 500 futures rose 0.2% to 5,274.0 points, while Nasdaq 100 futures rose 0.2% to 18,485.0 points at 19:40 ET (23:40 GMT). Dow Jones futures rose 0.2% to 39,758.0 points.
Wall Street indexes fell into a holding pattern after hitting record highs last week as traders now look for further clues on the path of inflation and interest rate cuts. The AI-led tech rally also saw some pullbacks on Tuesday, with market favorite NVIDIA Corporation (NASDAQ:NVDA) falling 2.6% from a near-record high. Shares stabilized in aftermarket trading.
The focus is now squarely on the PCE price index data, the Fed’s preferred inflation gauge, due out on Friday, when markets will be closed for the Good Friday holiday. Top Fed officials — Chairman Jerome Powell and rate-setting committee member Mary Daly — will also speak separately on Friday, offering more clues about rate cuts after the central bank signaled last week that it still plans to cut rates by 75 basis points by 2024, regardless of inflation.
But expectations of a rate cut will put Wall Street under pressure.
The S&P 500 fell 0.3% to 5,203.58 points, while the NASDAQ Composite closed down 0.4% to 16,315.70 points on Tuesday. The Dow Jones Industrial Average fell 0.1% to 39,282.33 points. All three indexes maintained record highs reached last week.
Merck shines in after-hours trading, GME plunges
Among the big aftermarket stocks, pharmaceutical giant Merck & Company Inc (NYSE:MRK) surged nearly 5% to a record high after the U.S. Food and Drug Administration approved a treatment for a rare lung disease. On the other hand, GameStop Corp (NYSE:GME) fell as much as 16% after its quarterly earnings missed estimates. The struggling video game retailer also said it cut an unspecified number of jobs during the quarter to reduce costs, as it faces continued pressure from digital platforms and slowing consumer spending.
Krispy Kreme Inc (NASDAQ:DNUT) rose 3.8%, extending a surge of nearly 40% since the session after the company struck a deal with McDonald's Corporation (NYSE:MCD) to sell its shares of doughnuts through the fast-food chain. Shockwave Medical Inc (NASDAQ:SWAV) rose 1.6%, extending gains after rising 10% on a report that Johnson & Johnson (NYSE:JNJ) is in talks to buy the medical device maker.
Source: Investing
