After hours, Dow Jones futures, S&P 500 futures, and Nasdaq futures saw a slight rise as chip-equipment giant ASML prepared to report before the opening bell on Wednesday. Jerome Powell, the Fed chief, cited a lack of progress in achieving the 2% inflation goal for the year, hinting that rates will remain unchanged until inflation is closer to the target. Despite Powell’s comments, the major indexes continued to trade below their 50-day moving averages, with some leading stocks demonstrating positive movement.
Leading stocks like Sea Limited, DraftKings, and Datadog showed promising activity, with Sea Limited making a bullish move towards a buy point. Additionally, chip companies like Applied Materials, Lam Research, and KLA Corp. are positioning themselves near entry points. ASML’s upcoming earnings report will play a significant role in determining the industry’s outlook. Tesla stock faced challenges as it broke below 2024 lows amid concerns about the company’s strategy following substantial job cuts and other announcements.
Investors remain cautious as the stock market rally remains under pressure, with major indexes struggling to stay above key levels. Powell’s comments on inflation and interest rates, along with rising Treasury yields, have added headwinds to the market. While the current situation calls for prudence and monitoring of key levels, opportunities for potential investment still exist, especially with some stocks showing resilience and relative strength. It is essential for investors to continue researching and building watchlists to navigate the market effectively.