Stock Market Today: S&P 500 Heading for Another Record High; Dow Set to Open Up; Netflix, Tesla, AT&T, ASML, and More Movers; Crypto News (2024)

What to Watch Today

Signs of economic strength give little incentive for the Fed to start cutting rates, and traders have scaled back expectations for a rate cut as soon as March amid recent data points that have pointed to a resilient U.S. economy.

More signals that the economy is running hot threaten to further push back rate-cut bets, putting the focus Wednesday on purchasing-managers indexes (PMIs) due out of the U.S. covering services and manufacturing.

Tesla reports earnings today. For live updates and analysis, click here.

U.S. stock futures continued their recent advance on Wednesday, with the S&P 500 on track to make its fourth record high in as many days, as investors monitored corporate earnings and economic indicators that could impact the outlook for interest rates.

Futures for the Dow Jones Industrial Average rose 80 points, or 0.1%, after the index slipped 96 points on Tuesday to close at 37,905. S&P 500 futures gained 0.4%, with contracts tracking the tech-heavy Nasdaq up 0.7%. The yield on the benchmark 10-year U.S. Treasury note ticked down to 4.11%.

Technology stocks continued to add buoyancy to the wider stock market, with Nasdaq futures outperforming after Netflix’s blowout earnings late Tuesday. Tech has been on a tear, with the latest leg of gains coming since last week amid optimism over artificial intelligence fueling fresh demand.

“Yesterday saw a relatively quiet session as both the S&P 500 and 10-year Treasuries saw their narrowest trading ranges of the year so far,” said Jim Reid, a strategist at Deutsche Bank. “Looking forward, one of the main highlights today will be the rest of the flash PMIs from the U.S. and Europe, which will give us an initial indication of how the major economies are performing in 2024.”

Investors continue to focus on economic data that may influence the pathway for interest rates, with a stock market rally since late last year driven by expectations that the Federal Reserve will soon start lower borrowing costs from their generational peak. Signs of economic strength give little incentive for the Fed to start cutting rates, and traders have scaled back expectations for a rate cut as soon as March amid recent data points that have pointed to a resilient U.S. economy.

More signals that the economy is running hot threaten to further push back rate-cut bets, putting the focus Wednesday on purchasing-managers indexes (PMIs) due out of the U.S. covering services and manufacturing.

“There is lingering uncertainty…sparked by stronger than expected economic indicators in the U.S. in recent weeks. Investors scaled back interest rate expectations in response to hotter-than-forecast jobs data in the region,” said Sophie Lund-Yates, an analyst at broker Hargreaves Lansdown.

Corporate earnings will also be in the spotlight, with quarterly results due in the day ahead from companies including AT&T, SAP, IBM, Lam Research, Tesla, and others.

European stocks advanced on Wednesday in line with positive global sentiment—with Chinese equities surging and the S&P 500 in the U.S. set for another record high—despite fresh economic data painting a mixed picture of the region’s outlook.

London’s FTSE 100 gained 0.4% while the Paris CAC 40 traded 1% higher. Frankfurt’s DAX advanced 1.3% with the pan-European Stoxx 600 rising 1%.

In focus was a wave of purchasing-managers’ indexes (PMIs) released on Wednesday, which are key economic indicators of manufacturing and services.

“PMI surveys from France and Germany revealed that business activity in both nations continued deteriorating, with the numbers of the whole Eurozone though suggesting that the downturn is easing,” wrote Charalampos Pissouros, an analyst at broker XM. “U.K. PMIs painted a different picture, with both the services and manufacturing sectors improving, although the later index stayed in contractionary territory.”

Chinese stocks outperformed their Japanese peers for a second session on Wednesday—a reversal of a recent trend—after Beijing announced a new stimulus measure and Tokyo traders continued to mull this week’s Bank of Japan decision.

Hong Kong’s Hang Seng Index jumped 3.6% and the Shanghai Composite surged 1.8%, the best day all year for both benchmarks. The move higher came after the Chinese central bank said it would lower reserve ratio requirements for banks, effectively injecting liquidity into markets and the economy.

Meanwhile, Tokyo’s Nikkei 225 slipped 0.8%, declining for a second day and reversing what has been a hot streak for Japanese stocks. Weakness follows from the Bank of Japan’s decision on Tuesday: while the central bank held interest rates steady, the market interpreted remarks from BOJ governor Kazuo Ueda as hawkish, or signaling tightening ahead, which would weigh on stocks.

Indian shares closed higher, led by steel and tech stocks, in a likely rebound following previous losses.

Among top gainers, Tata Steel rose 3.9% and Zee Entertainment Enterprises rebounded after plunging yesterday and closed 6.7% higher.

Tech Mahindra advanced 3.1% after its 3Q profit fell on lower revenue and higher expenses.

Bank stocks fell, with ICICI Bank dropping 2.9% and Axis Bank down 2.8%. The benchmark Sensex closed 1.0% higher at 71060.31.

Oil prices were edging higher as traders navigate between risks to supply due to geopolitical tensions and rebounding crude output in the U.S. along with the restart of production at a major Libyan oil field.

Benchmarks Brent crude and WTI were both 0.2% higher at $79.71 a barrel and $74.52 a barrel, respectively, after settling lower in the previous trading session.

Growing geopolitical tensions across the Middle East continue to support the market, but the upward trend looks limited as oil production and supply haven't been directly affected, according to analysts.