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U.S. Index Futures Mixed Following Tech Sell-Off, WTI and Brent Crude Dip Slightly

Fernanda T
Latest News
June 25 2024 6:37AM

U.S. index futures showed mixed results in Tuesday’s pre-market, following a tech sector sell-off the previous day, resulting in the Nasdaq Composite’s worst performance since April. Investors are focusing on financial results from Carnival and FedEx, along with a series of economic indicators to be released throughout the day.

At 6:54 AM, Dow Jones futures (DOWI:DJI) fell 35 points, or 0.09%. S&P 500 futures advanced 0.16%, and Nasdaq-100 futures gained 0.39%. The 10-year Treasury yield stood at 4.24%.

In the commodities market, West Texas Intermediate crude for August fell 0.43%, to $81.28 per barrel. Brent crude for August dropped 0.44%, near $85.63 per barrel. Oil prices changed little, with concerns over China’s economic recovery balancing tensions in the Middle East and Ukrainian attacks on Russian refineries. Iron ore traded on the Dalian Exchange fell 0.69% to $109.53 per metric ton.

Tuesday’s U.S. economic indicators begin at 8:30 AM with the Chicago Fed’s May national activity index. Next, at 9 AM, S&P will release the April S&P Case/Shiller index, which monitors residential real estate prices. At 10 AM, the Commerce Department will present May existing home sales data, followed by the Conference Board at 10 AM with the June consumer confidence index. Also at 10 AM, the Richmond Fed and Dallas Fed will publish June manufacturing and services indexes, respectively.

Asia-Pacific markets mostly closed higher on Tuesday, with Japan’s Nikkei 225 rising 0.95% and the Topix up 1.72%. Hong Kong’s Hang Seng increased by 0.25%, while Australia’s ASX 200 closed 1.36% higher. South Korea’s Kospi rose 0.35%. Conversely, China’s Shanghai Composite fell 0.44%.

Reuters reported that the Biden administration is investigating three Chinese telecom companies, China Mobile, China Telecom, and China Unicom, over concerns about Beijing’s access to American data. Despite this, shares of these companies rose on Tuesday. Asian investors also assessed South Korea’s June consumer sentiment index, which rose to 100.9, and Japan’s services producer prices, which increased 2.5% in May.

European markets are down on Tuesday, influenced by the U.S. market performance. The industrial sector is underperforming, while the oil and gas sector has risen. Among individual stocks, Novo Nordisk (TG:NOV) shares rose 1.6% after Wegovy’s approval in China. Zealand Pharma (TG:22Z) increased 3.4%, while Airbus (EU:AIR) plummeted 10.9% after reducing targets for 2024.

U.S. stocks closed mixed on Monday, with the Dow Jones rising 0.67%, while the S&P 500 and Nasdaq fell 0.31% and 1.09%, respectively. Nvidia (NASDAQ:NVDA), Dell (NYSE:DELL), and Qualcomm (NASDAQ:QCOM) recorded significant declines, while the energy, financial, and utility sectors rose.

In terms of quarterly reports, Carnival Corp (NYSE:CCL), TD Synnex Corporation (NYSE:SNX), and Airship (NASDAQ:AISP) are reporting before the market opens.

After the close, FedEx (NYSE:FDX), Progress Software Corporation (NASDAQ:PRGS), and GreenTree Hospitality Group (NYSE:GHG) numbers are awaited.