Finance News

Inventory futures are rising barely because the market's comeback rally continues

US stock index futures rose Wednesday, a day after the Nasdaq Composite index hit an all-time high and the S&P 500 closed just under one.

Futures contracts linked to the Dow Jones Industrial Average rose 50 points. S&P 500 futures and Nasdaq 100 futures were both about 0.1% higher.

All three major averages ended Tuesday's session in the green, undoing losses from earlier in the session amid tech sector strength.

The S&P 500 rose 0.5%, closing just 0.2% from a new all-time high. The Dow rose 163 points after falling more than 120 points at the start of the session. The Nasdaq Composite was the relative outperformer, hitting a new intraday all-time high, up 0.8% from the session for a new record close.

This was the Nasdaq's first new high since April 29, as investors returned to big tech stocks.

Bitcoin staged an impressive comeback on Tuesday that continued on Wednesday. On Tuesday, the cryptocurrency temporarily fell below $ 30,000 and lost its profits for 2021. But Bitcoin ultimately made up for the entire 11% loss and ended the session in positive territory, according to Coin Metrics.

As of the last review, Bitcoin rose another 4% to over $ 34,000 on Wednesday.

Federal Reserve Chairman Jerome Powell testified outside the House on Tuesday, which seemed to lift sentiment as he reiterated that inflationary pressures will be temporary.

"Powell outlined how the excess inflation will come from categories directly affected by the reopening," said Ed Moya, senior market analyst at Oanda. "He found that there was an extremely strong demand and that the supply was caught flat."

For June, the S&P 500 and the Nasdaq Composite are in the green, rising 1% and 3.6% respectively. However, the Dow is down for the month on weakness from Caterpillar and JPMorgan.

Looking ahead, UBS said it maintains a "positive tactical view of stocks" but that profits will be unevenly distributed.

"We see potential in regional markets that lagged in the second quarter, particularly China and Japan, as well as in the companies and sectors hardest hit by the economic reopening, including energy, financials and US small and mid-caps "said the company recently wrote on a customer note. UBS said investors should take profits on some of this year's winners that may have limited upside potential, including real estate, consumer discretionary and industrials.

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