Stock futures are hovering near the flat line Tuesday evening after the S&P 500 rebounded from a rough start to the week.
S&P 500 futures were hovering near the flat line, while Nasdaq 100 futures were down 0.05%. Dow Jones Industrial Average futures were down 0.1%.
In after-hours action, FedEx shares rose 15% after it reported adjusted earnings that beat estimates for its fiscal fourth quarter. Electric vehicle maker Rivian surged 55% after Volkswagen said it would invest up to $5 billion in the company.
In regular trading Tuesday, both the S&P 500 and the Nasdaq Composite ended three days of declines, helped by a rebound in Nvidia shares. The 30-stock Dow Jones Industrial Average was the laggard among the three major indexes, falling nearly 300 points.
Nvidia’s nearly 7% jump on Tuesday marked its first positive session after three days of losses. The AI company’s market cap gives it a huge influence on the S&P 500, and its 154% surge in 2024 has raised concerns about a lack of breadth in this year’s rally.
“We still think it’s premature to write off the rest of the market in favor of large-cap tech and Nvidia in particular,” Paul Hickey, co-founder of Bespoke Investment Group, told CNBC on Tuesday. “We’re looking at the expansion of the market, but it’s not necessarily a binary choice between the larger companies and the smaller companies, but there’s more of a bias going forward looking at these other companies in the S&P 500.”
Wall Street will turn its attention to fresh inflation data on Friday with the release of the May personal consumption expenditures price index. The Fed is closely watching this measure, its preferred inflation gauge, and investors remain optimistic about the possibility of a rate cut.
