Nasdaq, Dow Futures Climb After Tough Week — Strategist Says S&P 500 Could Have Found Support At October Lows

• Nvidia’s earnings, which many had pinned their hopes on to salvage the market, proved inadequate, as stocks succumbed to AI bubble worries last week.
• Monday’s economic calendar is empty, although the week will witness the release of some key economic data.
• The key earnings reports on Monday’s calendar are Agilent (A), Semtech (SMTC), and Zoom Communications (ZM).

U.S. stocks are primed for back-to-back gains as the major index futures trade moderately higher early Monday. Oversold levels could trigger buying in some durable-growth names, potentially lifting the market. The abbreviated week due to the Thanksgiving Day holiday on Thursday could lead to anemic trading volume, potentially sparking volatility. 

Carson Group Chief Market Strategist shared a chart which showed Nov. 24 has historically been the third-best day of the year, on average, for the S&P 500 Index. He also shared a technical chart showing the S&P 500 finding support near early October lows and the 20-week exponential moving average trending up.

How Futures Are Trading

As of 2:10 a.m. ET on Monday, the Nasdaq 100 and S&P 500 futures climbed 0.64% and 0.44%, respectively, while the Dow and Russell 2000 added 0.16% and 0.37%, respectively.

On Stocktwits, retail sentiment toward the SPDR S&P 500 ETF (SPY), an exchange-traded fund that tracks the S&P 500 Index, stayed ‘bearish’ as of early Monday. The Invesco QQQ Trust (QQQ) ETF, which tracks the Nasdaq 100 Index, saw sentiment improve to ‘neutral’ levels from ‘bearish’ a day ago. The message volume on the SPY and QQQ ETF streams remained at ‘high’ levels.

Commenting on the QQQ stream, a bearish watcher said a rate cut in December won’t be adequate to reverse the bearish trend.

Another user, however, sounded optimistic. After Pershing Square’s Bill Ackman disclosed in a media interview that his firm has done due diligence to buy a stock it has long wanted to own, social media began speculating it could be Meta. The user said that if that is the case, it could be a massive upside catalyst.

How Markets Fared Last Week

Nvidia’s earnings, which many had pinned their hopes on to salvage the market, proved inadequate, as stocks succumbed to artificial intelligence (AI) bubble worries last week. The September job report also added to concerns, as the rate-cut odds dropped following its release, while stocks recovered on Friday, encouraged by dovish commentary from a Fed official.

For the week, the SPY, QQQ, SPDR Dow Jones Industrial Average ETF Trust (DIA) and iShares Russell 2000 ETF (IWM) declined 1.9%, 3.09%, 1.96% and 0.79%, respectively.

Key Catalysts To Watch Out For

Monday’s economic calendar is empty, although the week would witness the release of some key economic data, including the September retail sales, durable goods orders and producer prices reports, October pending homes sales report, the Conference Board’s consumer confidence report for November, the weekly jobless claims report and the results of the Chicago ISM’s manufacturing purchasing managers’ survey for November.

The key earnings reports on Monday’s calendar are Agilent (A), Semtech (SMTC) and Zoom Communications (ZM).

How Other Markets Fared

Crude oil futures rose modestly early Monday after declining sharply last week amid easing geopolitical concerns and a muted demand outlook. Gold futures slipped moderately and the 10-year U.S. Treasury note yield edged up but stayed under 4.1%. The U.S. dollar index edged down but held above 100.

Most Asian markets rebounded from the past week’s sell-off as Wall Street rebounded on Friday. The Japanese market remained closed for a public holiday.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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