A trader works on the floor of the New York Stock Exchange (NYSE) at the opening bell on November 26, 2024, in New York City.
Timothy A. Clary | Afp | Getty Images
U.S. stock futures slid Wednesday night after the tech-heavy Nasdaq Composite finished above the 20,000 level for the first time.
Futures tied to the Nasdaq 100 slipped 0.2%. S&P 500 futures inched down 0.1%. Dow Jones Industrial Average futures fell 83 points, or about 0.2%.
In extended trading, software giant Adobe declined 9% following the company’s weaker-than-expected revenue guidance for the current quarter.
During Wednesday’s regular trading session, the Nasdaq gained around 1.8%, topping the 20,000 threshold and posting an all-time high and a closing record. The broad market S&P 500 added 0.8%. Meanwhile, the 30-stock Dow underperformed, falling around 99 points, or 0.2%.
Equities are “rebounding from a poor start to the week,” said Mark Hackett, chief of investment research at Nationwide.
To be sure, “Expectations are elevated, and valuations are at the highest level since the technology bubble,” Hackett added. “While seasonality and technical tailwinds are supportive through year end, investors are likely to be more discerning and selective next year as risk and reward are scrutinized.”
November’s consumer price index report also came in line with economists’ estimates, leading investors to anticipate another rate cut from the Federal Reserve at its policy meeting next week. The CPI reading, which tracks prices across a basket of goods and services, rose 0.3% month over month and grew at a 12-month rate of 2.7%. Fed funds futures trading data reflects a nearly 99% likelihood that central bank policymakers will lower rates next week, according to the CME FedWatch tool.
Additional inflation data awaits on Thursday morning, with the release of the producer price index report for November. Economists polled by Dow Jones see a 0.2% increase on a monthly basis. Weekly jobless claims are also due.
On the earnings front, chip giant Broadcom, home furnishings company RH and retailer Costco Wholesale are due to post results after the close.
