Dow, S&P 500 Futures Slip As Major Indices Perch At New Highs — Strategist Says We’re Still In Young Bull Market

Stocks are on track for a lackluster session as traders, uneasy over the market’s record performance and cautious ahead of Wednesday’s rate decision, could prefer moving to the sidelines.

Friday marks the first of the three upcoming sessions that could show a lack of direction.  

As of 4:05 a.m. ET on Friday, the Dow and S&P 500 futures fell 0.15% and 0.11%, respectively, while the Nasdaq 100 futures were down 0.03%. The Russell 2000 futures pulled back a steeper 0.35%.

After data showed that jobless claims climbed to the highest since 2021 and August consumer prices largely aligned with expectations, except for the monthly rate, stocks rallied sharply on Thursday. Non-tech stocks showed marked strength, especially those in the consumer, financial, healthcare, material, and real estate spaces.

The bull market rally is broadening, with inflows into underperforming non-tech stocks expected to gain steam when the central bank resumes rate cuts.

The Nasdaq Composite and the S&P 500 Indices, which were already in record territory, hit fresh highs, while the Dow Jones Industrial Average and the Nasdaq 100 Index reclaimed their record highs.

The SPDR S&P 500 ETF (SPY), an exchange-traded fund (ETF) that tracks the S&P 500 Index, and the Invesco QQQ Trust (QQQ) gained 0.83% and 0.58%, respectively. The SPDR Dow Jones Industrial Average ETF Trust (DIA) and the Shares Russell 2000 ETF (IWM) jumped 1.31% and 1.85%, respectively..

Traders will look ahead to the preliminary University of Michigan consumer sentiment report, due at 10 a.m. ET. Economists, on average, expect the headline index to remain almost unchanged at 58.1 in September. 

While overbought fears restrain traders, one strategist is confident that the rally will play out for a long time. Carson Group’s Ryan Detrick said the current bull market, which will turn three years old soon, is still a rather “young” bull market. 

“History would say there is likely many more years left,” he said, adding that in the past 50 years, five bull markets got past their second birthday, and the average age was 8 years. The shortest was five years old, Detrick said.

Crude oil futures extended their pullback early Friday, while gold futures rose, as they push toward retesting all-time highs. The 10-year U.S. Treasury note yield reversed course after dropping precariously close to the 4% mark.

The U.S. dollar traded narrowly mixed against most major counterparts. Major Asian markets advanced, feeding off the strength of Wall Street. 

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