Are S&P Futures Setting Up for a Market Downturn Today?

2 min read | December 16, 2024 02:30 PM GMT | By Team Kalkine Media

Highlights

  • Super Micro Computer removed from Nasdaq 100 index.
  • Nasdaq 100 sees addition of Palantir, MicroStrategy, Axon.
  • Treasury yields dip as oil prices decline in premarket.

In premarket trading on Monday, major stock indexes exhibited upward trends. Dow Jones Industrial Average futures increased by 0.2%, while S&P 500 futures advanced by 0.3%. The Nasdaq 100 futures, which are heavily weighted with technology stocks, rose by 0.5%. Concurrently, the 10-year Treasury yield decreased slightly to 4.37%, and oil prices experienced a downturn, with West Texas Intermediate futures settling around $70.85 per barrel.

Index Composition Changes

A notable development for the Nasdaq 100 index occurred late Friday when the exchange announced the inclusion of Palantir Technologies (PLTR), MicroStrategy (MSTR), and Axon Enterprise (AXON). These additions will take effect before the opening bell on December 23. As a result, Moderna (MRNA), Illumina (ILMN), and Super Micro Computer (SMCI) will be removed from the index. In premarket trading following the announcement, Palantir saw a decline of 0.8%, MicroStrategy surged by 3.7%, and Axon increased by 1.1%. Moderna experienced a marginal rise of 0.1%, while Illumina decreased by 0.3%. Super Micro Computer faced a significant drop of over 12%.

Treasury and Oil Market Trends

The slight decrease in the 10-year Treasury yield to 4.37% reflects broader economic sentiments ahead of the upcoming Federal Reserve meeting scheduled for later in the week. Oil prices also saw a decline, with West Texas Intermediate futures trading at approximately $70.85 per barrel. These movements indicate cautious positioning in response to potential monetary policy decisions.

Exchange-Traded Funds Performance

Among exchange-traded funds (ETFs), the Invesco QQQ Trust (QQQ) recorded a gain of 0.5%, while the SPDR S&P 500 ETF (SPY) increased by 0.4% prior to the market opening. These ETFs provide exposure to the broader market indices and reflect the general upward trend observed in premarket trading activities.


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