Traders work on the floor of the New York Stock Exchange (NYSE) on October 30, 2023 in New York City.
Spencer Platt | Getty Images
U.S. stock futures fell Tuesday as momentum from a tech-led rally in the previous session appeared to ease.
Dow Jones Industrial Average futures lost 109 points, or 0.3%. S&P 500 futures dipped 0.3%, and Nasdaq 100 futures slipped 0.4%.
Those moves come after a strong trading session for equities. The S&P 500 and the Nasdaq Composite on Monday rallied more than 1% and 2%, respectively, as mega-cap tech stocks bounced from last week’s declines. Nvidia shares reached an all-time high, climbing 6.4% during the session.
Even the 30-stock Dow ended the day more than 200 points higher, or 0.6%. The index overcame a sharp drop in Boeing shares following news over the weekend that the company’s aircraft would be temporarily grounded.
Mega-cap tech stocks outperformed as investors bought the dip after last week’s selloff. Investors were worried major names such as Apple could underperform after their market leadership last year, but other traders expect the outlook for tech stocks remains bright.
“The market’s really trying to figure out how many cuts we’re going to have this year, and for us, we believe that more equities will see all-time highs at the end of 2024,” said AJ Oden, global investment strategist at JPMorgan Private Bank. “And the reason for that is we believe that technology will have a pretty strong year, and that’ll sort of add to that that tailwind that we’re seeing in equities into the end of the year.”
Later this week, investors will parse through a pair of key inflation readings to gain clarity into the path forward for rate cuts from the Federal Reserve. The December consumer price index is set for release Thursday, followed by the producer price index on Friday.