Stock Futures Steady After S&P 500’s Three-Day Winning Streak: Get Live Updates Now!

Investors are holding their breath as stock futures show little change. They’re eyeing the risks of a market that’s recently hit record highs.

On Monday night, futures for the Dow Jones fell slightly by 18 points, or 0.04%. The S&P 500 and Nasdaq 100 saw the same drop. Despite this, all three major indexes ended the trading day at all-time highs for the third session in a row. Much of this surge came after Nvidia announced it would invest $100 billion in OpenAI for new data centers, sending its shares up nearly 4%.

But as excitement grows around AI, questions linger about whether it can consistently drive U.S. stocks higher. Joe Davis, Vanguard’s chief global economist, pointed out that the rapid rise in AI and recent cuts to interest rates from the Federal Reserve have pushed stock prices up, even as underlying economic fundamentals remain steady. He warned that when valuations are high, bad news can have a bigger impact.

“We need to see economic growth improve in the second half of the year or make progress on inflation, which is still persistent,” Davis said during an interview on CNBC. He suggests that either of these changes could stabilize the market.

Investors are also concerned about a potential government shutdown. With a deadline looming on September 30, both Republican and Democratic proposals for temporary funding have been rejected by the Senate. Historically, the stock market hasn’t reacted strongly to shutdown worries, but this time may be different. The current economic situation is the weakest it has been in over 20 years, which could amplify the impact of a shutdown.

As we wait for the upcoming report on personal consumption expenditures—an inflation measure favored by the Fed—many are curious how it will influence monetary policy in the coming months. Understanding these dynamics is crucial for investors as they navigate this uncertain landscape.

For more insights into economic trends, you might find the Federal Reserve’s official reports helpful in staying informed about inflation and market conditions.



Source link

Breaking News: Markets,Stock markets,Markets,S&P 500 Index,NVIDIA Corp,business news