Dow Futures Flatline As Macro, Geopolitical Challenges Stifle Risk Appetite — But Strategist Says ‘New Highs’ Not Far Off

U.S. stock futures barely held up in overnight trading after the major averages ended Wednesday’s session on a mixed note amid volatility.

The lackluster sentiment could be traced back to President Donald Trump’s renewed attack on Federal Reserve Chair Jerome Powell and his comments about evaluating a few people as a potential replacement for the central bank chief.

In the latest on the Israel-Iran strife, the ceasefire held for a second day, while Trump said the U.S. would hold talks with Iran next week. As the nations launched minor attacks against each other amid the ceasefire, fund manager Louis Navellier noted, “Moving forward, the key is for this fledgling ceasefire to stick and any uncertainty to end.”

Micron Technology’s artificial intelligence (AI)-powered third-quarter outperformance could be a welcome relief to traders left to contend with macro and geopolitical challenges.

As of 11:57 p.m. ET on Wednesday, the S&P 500, Dow and Russell 2000 futures traded marginally higher, while the Nasdaq futures rose modestly.

Stocks went about in a lackluster manner on Wednesday amid the ongoing uncertainties, with the S&P 500 Index ending little changed with a negative bias at 6,092.16. Nevertheless, the index remains on track to push past its Feb. 19 highs of 6,247.43.

 IT and communication services stocks bucked the broader market weakness, helping the technology-focused Nasdaq Composite index end modestly higher.

The Invesco QQQ Trust (QQQ) ETF and the SPDR S&P 500 ETF (SPY) added 0.26% and 0.06%, respectively.

On the other hand, the SPDR Dow Jones Industrial Average ETF Trust (DIA) and the  iShares Russell 2000 ETF (IWM) fell 0.22% and 1.17%, respectively.

Among the economic catalysts that could impact trading on Thursday are the weekly jobless claims report and the durable goods orders report for May.

The Bureau of Economic Analysis is scheduled to announce the second estimate of first-quarter GDP, and the National Association of Realtors will release its pending home sales report for May. 

Cleveland Fed President Beth Hammack is due to speak at 9 a.m. ET.

Nike (NIKE), Walgreens Boots Alliance (WBA), McCormick (MKC) and Acuity (AYI) are among the companies scheduled to announce their quarterly results on Thursday.

A strategist is hopeful of a new high coming in the summer. Crunching historical numbers, Carson Group’s Ryan Detrick said July was the best month in a post-election year over the past 20 years. Over the past decade, it was the second-best month, he said. 

Crude oil futures added to their gains in the New York session and traded above the $65-a-barrel mark. Gold futures also rose modestly, and the U.S. dollar was weaker across the board. 

The 10-year U.S. Treasury note yield retreated further below the 4.30% level.

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