Traders
work
on
the
floor
of
the
New
York
Stock
Exchange
on
July
11,
2024.
Spencer
Platt
|
Getty
Images
S&P
500
futures
inched
up
Sunday
night
after
the
broad
market
index
suffered
its
worst
weekly
losses
since
April
last
week
as
investors
rotated
out
of
megacap
technology
stocks
for
smaller
names.
Futures
tied
to
the
broad
market
index
gained
0.2%.
Dow
Jones
Industrial
Average
and
Nasdaq
100
futures
added
0.1%
and
0.4%,
respectively.
Traders
also
kept
an
eye
on
the
U.S.
political
landscape
after
President
Joe
Biden
dropped
out
of
the
presidential
race
on
Sunday
and
endorsed
Vice
President
Kamala
Harris
as
the
Democratic
nominee.
Since
Biden’s
disastrous
debate
performance
in
June,
many
analysts
were
seeing
an
increasing
likelihood
of
a
win
by
former
President
Donald
Trump
in
November.
Jay
Hatfield,
CEO
at
Infrastructure
Capital
Advisors,
said
he
expects
a
“muted
stock
market
reaction”
to
Biden’s
resignation
from
the
presidential
race,
as
it
had
been
largely
expected
as
calls
for
him
to
bow
out
grew
louder.
“The
fact
that
Biden
endorsed
Kamala
Harris
reduces
uncertainty.
There
may
be
a
small
unwinding
of
the
Trump
trade
on
Monday as
Vice
President
Harris
is
perceived
to
have
a
slightly
better
chance
of
winning,”
Hatfield
said.
Earnings
and
central
bank
policy
will
also
be
top
of
mind.
Traders
have
been
pricing
in
nearly
a
93%
likelihood
of
the
Federal
Reserve
cutting
interest
rates
during
its
September
meeting.
With
this
in
mind,
investors
have
been
selling
off
the
big
tech
winners
of
the
market
rally,
in
favor
of
rate-sensitive
stocks
such
as
small
caps
and
industrials
that
stand
to
benefit
from
lower
rates.
During
the
previous
trading
week,
the
S&P
500
and
Nasdaq
Composite
fell
nearly
2%
and
3.7%,
respectively,
marking
their
biggest
weekly
losses
since
April.
On
the
other
hand,
the
Dow
advanced
0.7%,
while
the
small
cap-focused
Russell
2000
gained
1.7%.
On
the
earnings
front,
investors
will
be
looking
toward
Verizon‘s
quarterly
results
Monday
morning.
No
major
economic
updates
are
expected
until
later
in
the
week.
