Stock futures hovered near flat on Wednesday after the major averages extended their strong rally into the close.
S&P 500 futures were up 0.05%, while Nasdaq 100 futures were up 0.13%. Futures linked to the Dow Jones Industrial Average fell 12 points, or 0.03%.
On Tuesday, FedEx slumped 9% in extended trading after a disappointing revenue outlook for the fiscal year. Second-quarter results also fell short of Wall Street expectations on both the top and bottom lines.
Stocks were broadly higher in regular trading on Tuesday, with the S&P 500 rising 0.59% to close near its record close and intraday high set in January 2022.
The Nasdaq Composite jumped 0.66% to close above the 15,000 level for the first time since January 2022, while the 30-stock Dow rose 251.90 points, or 0.68%. Both indexes posted their ninth consecutive winning day and the Dow closed at a new record high.
All three major averages are on track for a winning December and 2023, as stocks build on the recent rally and investors look forward to interest rate cuts from the Federal Reserve in the New Year.
The S&P 500 is up 4.4% for the month and 24.2% for the year, while the Dow is up 4.5% and 13.3% respectively. The Nasdaq is up 5.5% in December and 43.4% year to date, putting it on track for its best year since 2020.
While the recent market may seem “strong under the hood” and helpful in boosting overall confidence on Wall Street, Charles Schwab’s Kevin Gordon cautions investors against getting too excited.
“This stealthy rotation below the surface can likely continue as we head into 2024, but given the near (and oddly) euphoric reaction to the Fed’s December decision, it wouldn’t be surprising to see a near-term pullback as sentiment has become quite frothy,” said the senior investment strategist.
The earnings season comes to a close on Wednesday with results from General Mills and Micron Technology. Consumer confidence data for December and existing home sales for November are also due.
