Traders work on the floor of the New York Stock Exchange during afternoon trading on June 3, 2024 in New York City.
Michael M. Santiago | Getty Images
Dow futures are expected to rise on Wednesday, with the 30-stock index hitting its highest level since June 2023.
Futures linked to the Dow Jones Industrial Average It increased by 0.03%. S&P 500 Futures It fell 0.21% Nasdaq 100 Futures It fell 0.41%.
In after-hours trading, Five Below The stock fell 10% after the company announced that CEO Joel Anderson would step down and that COO Kenneth Bull would be named the new interim president and CEO. JB Hunt Transportation Services The stock fell more than 2% after reporting weaker-than-expected second-quarter results.
In Tuesday’s session, Dow It rose more than 700 points to close at a record high and its highest close since June 2023. S&P 500 It rose 0.64%, while the tech-heavy Nasdaq Composite Index finished up just 0.2%.
Small-cap stocks have also been recovering since last week’s June Consumer Price Index report, with some investors shifting away from large technology companies and popular artificial intelligence names toward smaller and cyclical stocks. Russell 2000 It rose 3.5%, its fifth straight day of gains. The small-cap index has risen more than 10% this month.
“The Dow has lagged the S&P 500 for much of the past two years, but it’s gotten fresh tailwinds this summer on hopes that the market rally will spread from a handful of technology companies to a broader range of companies across the economy,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.
The market rally is broadening as traders become optimistic about interest rate cuts, which should benefit small and mid-cap stocks and companies with higher financing costs. Federal funds futures contracts are signaling a 100% chance that the Federal Reserve will cut interest rates in September, according to the CME FedWatch tool.
Towards Wednesday United Airlines, Discover Financial Services, Johnson & Johnson and US Bancorp These are some of the companies scheduled to announce their quarterly financial results.
On the economic front, the Federal Reserve’s Beige Book will also be released, as well as data on housing starts and building permits for June.
