U.S. Stock Futures Edge Higher Ahead of Inflation Data; Robinhood and Fisker Make Significant Moves
ICARO Media Group
U.S. stock futures indicated a slightly positive start on Wednesday evening as investors awaited another inflation reading. Dow Jones Industrial Average futures rose by 20 points, or less than 0.1%, while S&P 500 futures and Nasdaq 100 futures inched higher by less than 0.1%.
In after-hours trading, Robinhood, the popular trading platform, experienced an 8% surge after reporting a 16% increase in assets under custody for February compared to the previous month. However, electric vehicle startup Fisker faced a significant setback, with its shares plummeting by 46% after reports emerged that the company has hired restructuring advisors to prepare for a potential bankruptcy filing.
The stock market experienced mixed activity during Wednesday's session. The S&P 500 and Nasdaq Composite slipped by 0.19% and 0.54% respectively, largely driven by a sharp decline in the technology sector, including a 1.1% drop in Nvidia's stock. Conversely, the Dow Jones Industrial Average managed to add 0.10%.
Investors are particularly focused on February's producer price index (PPI), which measures wholesale inflation. Economists polled by Dow Jones predict a 0.3% growth in the headline PPI for February, or 0.2% when excluding food and energy prices. The PPI report is the final major economic data release before the Federal Reserve's upcoming policy meeting scheduled for March 19-20.
The recent sell-off in the technology sector remains a notable market theme, according to Jay Woods, the chief global strategist of Freedom Capital Markets. Despite this, Woods points out that the market has been able to withstand the lack of technology leadership and has seen broader participation. The so-called "Magnificent Seven" stocks, which previously dominated the market, had mixed performance, with only Alphabet and Amazon ending Wednesday with gains. On a positive note, seven of the 11 S&P sectors closed higher, led by energy and materials.
Apple and Tesla have struggled due to weakened sales in the Chinese market and a lack of incentives related to artificial intelligence, according to Woods. The potential TikTok ban, as proposed by the House, could also have wider implications within the tech sector and Chinese-linked equities.
On Thursday, investors will closely monitor the release of the weekly jobless claims report and retail sales figures, both scheduled to be published prior to the opening bell.
In extended trading, Robinhood's shares added 8% following the release of its selected monthly operating data for February 2024. Meanwhile, cybersecurity company SentinelOne saw a 10% decline despite posting better-than-expected fourth-quarter earnings and revenue. Sportswear company Under Armour announced a CEO transition, resulting in a marginal increase of less than 1% in its stock.
The stock market's performance will continue to be influenced by inflation data, the technology sector's struggles, and upcoming economic reports throughout the week.
(Note: The information provided in this news article is based solely on the text provided by the user.