S&P 500 futures were steady Monday night as traders prepared for major corporate earnings reports after the index posted its best day in more than a month.
Futures tied to the broad index remained near their flat line. Dow Jones Industrial Average futures lost just 3 points, while Nasdaq 100 futures lost about 0.1%.
The moves come on the heels of a winning day on Wall Street as technology stocks rebounded from last week’s sell-off. The S&P 500 rose more than 1% in its best session since early June, while the Dow Jones Industrial Average rose 0.3%.
The tech-heavy Nasdaq Composite outperformed as technology stocks rose 1.6%. The S&P 500 was led higher by the information technology and communication services sectors, which rose about 2% and 1.2%, respectively.
The Russell 2000 index of small-cap companies added 1.7% in the session. That built on last week’s gains, which were seen as a sign that traders were moving money into this group of big tech names that have seen massive gains this year.
The shift to small companies also comes as investors become more excited that the Fed will soon begin cutting interest rates, a move seen as particularly beneficial for smaller, more cyclical companies.
The rotation from big tech to small-cap stocks that we saw last week is still in place, said Larry Tintarelli, chief technical strategist at Blue Chip Daily Trend Report. He said Monday’s broad advance was an attempt by investors to move ahead with potentially positive earnings reports over the next few days and the PCE price index reading due at the end of the week.
“I think this rotation story is still intact,” Tintarelli said. “If we get a bullish inflation report, I think you could see another rally in small caps and banks.”
