Traders were busy at the New York Stock Exchange on a day filled with highs and some lows for investors. After a solid record-setting session, futures for the S&P 500 and Nasdaq 100 edged up slightly. The S&P futures rose by 0.2%, while the Nasdaq 100 futures increased by 0.5%. However, futures for the Dow Jones Industrial Average dropped just a tiny bit, by 14 points.
In after-hours trading, things took a turn for the worse for Cava, a Mediterranean restaurant chain. Its shares fell over 22% after it reported weaker-than-expected revenue for the second quarter and revised its sales forecast downward for the year. Similarly, shares of CoreWeave, an artificial intelligence infrastructure provider, dropped around 9% despite it showing some revenue growth.
Earlier in the day, major U.S. stock indexes celebrated strong gains. The S&P 500 rose 1.1%, finishing at 6,445.76, and the tech-heavy Nasdaq climbed 1.4% to close at 21,681.90. The Dow Jones also saw a gain of about 483 points, a rise of 1.1%, ending at 44,458.61. Smaller companies did particularly well, with the Russell 2000 Index jumping nearly 3%. Lower borrowing rates often help these smaller stocks thrive.
Investors seemed relieved as inflation data came in better than expected. Many are now betting on a 94% chance of a rate cut at the Federal Reserve’s next meeting. The upcoming report on wholesale inflation will serve as another clue for the economic outlook, especially in the context of the Fed’s upcoming meeting at Jackson Hole later in August.
Still, not everyone is convinced by the recent market moves. Warren Pies, co-founder of 3Fourteen Research, warned that the excitement over small-cap stocks might be premature. He mentioned seasonal buying trends in August and expressed concerns about the labor market and broader economic growth.
According to recent surveys, many investors continue to been wary about long-term growth, indicating a potential lack of confidence in the market’s current strength. Understanding these complex dynamics is crucial for anyone trying to navigate today’s financial landscape.
For more insights on finance and market trends, investigate databases like the CME’s FedWatch Tool to better gauge investor sentiment.
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