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Stock index futures pointed to a higher open Wednesday following a lackluster previous session.
Nasdaq 100 futures (NDX:IND) +0.7%, S&P futures (SPX) +0.6% and Dow futures (INDU) +0.4% were higher.
“Markets put in a pretty subdued session over the last 24 hours, with low volumes and a pause in the selloff of longer dated bonds, even as the ‘higher-for-longer’ narrative continued at the front-end,” Deutsche Bank’s Henry Allen wrote. “There weren’t really any new catalysts to drive things, but that should start to change as we move towards the end of the week and Fed Chair Powell’s speech at Jackson Hole.”
“Indeed, we’ve got several events on the calendar happening today, including the August flash PMIs, Nvidia’s earnings after the US close, along with the latest revisions to nonfarm payrolls.”
Nvidia (NVDA) weighs in after the bell with shares up around 12% from the August 11 low going into the print and price targets seeing major upward revisions. But will it be a sell-the-news reaction?
Rates were easing back. The 10-year Treasury yield (US10Y) was down 6 basis points to 4.26% and the 2-year yield (US2Y) was down 3 basis points to 5%.
Apart “from front-end Treasuries, yesterday saw the relentless bond selloff finally ease up, with yields turning lower throughout the world,” Allen said. “That trend has continued overnight as well.”
Shortly after the start of trading, the preliminary August S&P Global PMI numbers arrive. The U.S. composite is expected to hold at 52.
Then July new home sales numbers are due. Economists expect a rise to a rate of 705K.
See the biggest stock movers this morning.
