Nasdaq Futures Dip As Traders Turn Cautious After Tech-Led Rally: Top Strategist Says He’s Bullish On Equities

U.S. stock futures are in the red in overnight trading, pointing to a negative open by Wall Street on Wednesday. The rally in the past two sessions has made the mood cautious as traders look ahead to clarity on Trump tariffs and some key jobs data due over the next three sessions.

As of 11:17 p.m. ET, the Nasdaq futures fell 0.14%, while the S&P 500, Dow, and the Russell 2000 futures were marginally lower.

Crude oil futures edged down after their recent rally and held above the $63 level, while gold futures rose moderately.

The 10-year U.S. Treasury note yield was flat overnight at 4.448%, and the U.S. dollar was a touch weaker against most major counterparts.

Among the key catalysts for the day is ADP’s private payrolls report for May, which is expected to show job gains of 110,000 compared to 62,000 in April.

The S&P’s final May services sector reading, the Institute for Supply Management’s non-manufacturing purchasing managers’ index (PMI), and the Federal Reserve’s Beige Book are also due.

Atlanta Fed President Raphael Bostic and Federal Reserve Governor Lisa Cook will participate in a “Fed Listens” event at 10:15 a.m. ET.

Dollar Tree (DLTR), Genesco (GCO), Lovesac (LOVE), Five Below (FIVE), MongoDB (MDB), PVH (PVH), and Verint Systems (VRNT) are among the notable companies announcing their quarterly results on Wednesday.

WisdomTree Senior Economist Jeremy Siegel said he remains bullish on equities because tariffs on all nations, except China, remain at 10%. He expects China tariffs to settle at 30%.

If the Trump administration doesn’t raise tariffs on steel and aluminum further, Siegel expects the market uptrend to continue.

“The market’s resilience, despite noise on tariffs, inflation, and politics, tells me that investors see the same economy I do: strong productivity, solid consumer spending, and stabilizing inflation,” he added.

On Tuesday, stocks started cautiously as traders digested the OECD’s sour global economic outlook but launched into a strong rally, with IT, energy, and material stocks seeing noteworthy gains. 

Artificial intelligence (AI) stalwart Nvidia (NVDA) rallied nearly 3%, reclaiming the status of the most valued global company.

Stronger-than-expected job openings data also buoyed sentiment.

The Invesco QQQ Trust (QQQ) ETF and the SPDR S&P 500 ETF (SPY) rose 0.78% and 0.57%, respectively.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) added 0.54% and the iShares Russell 2000 ETF (IWM) soared 1.61%.

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