The major U.S. index futures are currently pointing to a modestly lower open on Wednesday, with stocks likely to move back to the downside after ending yesterday’s choppy trading session slightly higher.
Profit taking may contribute to an initial pullback on Wall Street after yesterday’s slim gains lifted the S&P 500 to a new record closing high.
Lingering concerns about a global trade war may also weigh on the markets after President Donald Trump said he plans to impose tariffs on U.S. imports of automobiles, pharmaceuticals and semiconductors.
Trump said the 25 percent tariffs could be imposed as early as April 2nd and warned the duties could “go substantially higher over a course of a year.”
However, overall trading activity may be somewhat subdued, as traders look ahead to the release of the minutes of the Federal Reserve’s latest monetary policy meeting this afternoon.
The minutes of the Fed’ January meeting, when the central bank decided to leave interest rates unchanged following three straight rate cuts, could shed additional light on the outlook for rates.
Stocks showed a lack of direction throughout much of the trading session on Tuesday, extending the lackluster performance seen during last Friday’s session. The major averages moved to the upside going into end the day, however, with the S&P 500 reaching a new record closing high.
The major averages all posted modest gains on the day. The S&P 500 rose 14.95 points or 0.2 percent to 6,129.58, the Nasdaq inched up 14.49 points or 0.1 percent to 20,041.26 and the Dow crept up 10.26 points or less than a tenth of a percent to 44,556.34.
The choppy trading on Wall Street came as some traders remained on the sidelines following the Presidents’ Day holiday on Monday.
Traders may also have been expressing some uncertainty about the outlook for markets after last week’s strong gains lifted the Nasdaq and the S&P 500 back within striking distance of their record highs.
Last week’s gains came after President Donald Trump signed a memorandum calling on members of his administration to review plans for reciprocal tariffs on U.S. trade partners but stopped short of imposing the tariffs.
On the U.S. economic front, a report released by the Federal Reserve Bank of New York showed a turnaround by regional manufacturing activity in the month of February.
The New York Fed said its general business conditions index jumped to a positive 5.7 in February from a negative 12.6 in January, with a positive reading indicating growth. Economists had expected the index to climb to a negative 1.0.
Meanwhile, the report said optimism about the outlook for conditions over the next six months dropped significantly, with the index for future business activity slumping to 22.2 in February from 36.7 in January.
A separate report released by the National Association of Home Builders showed homebuilder confidence in the U.S. has unexpectedly deteriorated in the month of February.
The report said the NAHB/Wells Fargo Housing Market Index slumped to 42 in February after inching up to 47 in January. Economists had expected the index to come in unchanged.
Computer hardware stocks showed a substantial move to the upside on the day, driving the NYSE Arca Computer Hardware Index up by 3.7 percent to a record closing high.
Significant strength was also visible among steel stocks, as reflected by the 2.0 percent jump by the NYSE Arca Steel Index. With the upward move, the index reached its best closing level in over two months.
Semiconductor stocks also moved notably higher over the course of the session, with the Philadelphia Semiconductor Index climbing by 1.7 percent to a record closing high.
Gold, airline and pharmaceutical stocks also saw considerable strength on the day, while retail stocks moved to the downside.
U.S Index Futures Trading – Taking the first steps with Plus500
Beginning your futures trading journey requires careful preparation. Start by opening a Plus500 account with their minimum $100 deposit — qualifying for their initial bonus program.
Spend time in the demo environment, understanding how futures contracts behave and how the platform’s tools can support your strategy.
As you develop confidence, consider starting with micro contracts, which offer smaller position sizes ideal for learning position management.
Plus500’s educational resources can guide you through this process, helping you understand both basic concepts and advanced trading strategies.
Start your futures trading journey with Plus500 today
Trading futures carries substantial risk of loss and is not suitable for all investors. Plus500US Financial Services LLC is registered with the CFTC and member of the NFA. Past performance does not guarantee future results. Bonus terms and conditions apply.