Registration Strip Icon for monitor Customized watchlists with full streaming quotes from leading exchanges, such as NASDAQ, NYSE, AMEX, OTC Markets Small-Cap, LSE and more.

Futures Pointing To Initial Pullback On Wall Street

iHub News
Latest News
March 19 2024 9:22AM

The major U.S. index futures are currently pointing to a lower open on Tuesday, with stocks likely to give back ground following the strong upward move seen in the previous session.

A pullback by Nvidia (NASDAQ:NVDA) may generate some selling pressure, as the chipmaker is slumping by 2.7 percent in pre-market trading.

Nvidia held its first-ever GTC Conference on Monday, when the company unveiled its latest line of AI chips, called Blackwell.

Shares of Super Micro Computer (NASDAQ:SMCI) have also plunged by 10.6 percent in pre-market trading after the company announced the launch of a proposed underwritten registered public offering of 2 million shares of its common stock.

Caution ahead of the Federal Reserve’s highly anticipated monetary policy announcement on Wednesday may also weigh on Wall Street.

While the Fed is widely expected to leave interest rates unchanged, the central bank’s accompanying statement and economic projections could have a significant impact on the outlook for rates.

Recent hotter-than-expected inflation readings have reduced optimism about the likelihood of the Fed’s first rate cut coming in June.

After showing a strong move to the upside early in the session, stocks gave back some ground over the course of the trading day on Monday but managed to close mostly higher. With the upward move, the Nasdaq and the S&P 500 regained ground after closing lower for three straight sessions.

While the major averages came under pressure going into the close, they managed to end the day in positive territory. The Nasdaq advanced 130.27 points or 0.8 percent at 16,103.45, the S&P 500 climbed 32.33 points or 0.6 percent to 5,149.42 and the Dow rose 75.66 points or 0.2 percent at 38,790.43.

Technology stocks helped lead the early rally on Wall Street, with the tech-heavy Nasdaq showing a particularly strong move to the upside.

Shares of Alphabet (NASDAQ:GOOGL) surged by 4.6 percent after a report from Bloomberg said Apple (NASDAQ:AAPL) is in talks to build Google’s Gemini artificial intelligence engine into the iPhone.

Nvidia also jumped early in the session ahead of its GTC Conference but gave back ground before ending the day up by 0.7 percent.

At the same time, shares of Super Micro Computer plunged by 6.4 percent after the information technology company was added to the S&P 500 before the start of trading.

Meanwhile, traders continued to look ahead to the Federal Reserve’s two-day monetary policy meeting.

In U.S. economic news, a report released by the National Association of Home Builders showed an unexpected improvement in U.S. homebuilder confidence in the month of March.

The report said the NAHB/Wells Fargo Housing Market Index rose to 51 in March from 48 in February. Economists had expected the index to come in unchanged.

With the unexpected increase, the housing market index surpassed the breakeven point of 50 for the first time since hitting 56 last July.