Market Update: S&P 500 Futures Inch Up After Worst Weekly Losses Since April

The New York Stock Exchange is buzzing with activity as traders gear up for a new week of trading after a tumultuous period. Last week, the S&P 500 suffered its worst weekly losses since April as investors shifted their focus from megacap technology stocks to smaller names.

As the new week begins, S&P 500 futures have inched up, gaining 0.2%. Dow Jones Industrial Average and Nasdaq 100 futures have also seen slight increases of 0.1% and 0.3%, respectively.

In addition to market movements, traders are closely monitoring the U.S. political landscape following President Joe Biden’s surprising decision to drop out of the presidential race. Biden endorsed Vice President Kamala Harris as the Democratic nominee, leading to speculation about the potential impact on the stock market.

Jay Hatfield, CEO at Infrastructure Capital Advisors, predicts a “muted stock market reaction” to Biden’s resignation, as it was largely expected. He believes that the endorsement of Harris may lead to a slight unwinding of the Trump trade, with investors adjusting their strategies accordingly.

Looking ahead, earnings reports and central bank policy decisions will be key factors influencing market movements. Traders are anticipating a potential interest rate cut by the Federal Reserve during its September meeting, prompting a shift towards rate-sensitive stocks like small caps and industrials.

Despite last week’s losses, the Dow managed to advance while the Russell 2000, which focuses on small-cap stocks, saw gains. Investors will be keeping a close eye on Verizon’s quarterly results and awaiting major economic updates later in the week.

As the trading week unfolds, market participants will be navigating a complex landscape shaped by political developments, earnings reports, and central bank policies, all of which will play a role in determining the direction of the market.