US futures were trading lower today after the market recorded successive gains during the last few weeks.
While traders could maintain their risk-on sentiment, pushing the Nasdaq and S&P 500 closer to new highs, some risks could emerge if traders move to secure their gains.
Expectations of lower inflation and a softer stance from the Federal Reserve, which could prompt interest rate cuts and lower borrowing costs could support the market despite some policymakers’ attempts to curb enthusiasm.
Tomorrow’s GDP data and Friday’s personal consumption expenditure figures could provide further insight and could affect the market’s direction.
The energy sector performed well yesterday and recorded the strongest performance on the market, driven by rising oil prices as geopolitical tensions increase in the Red Sea. Military intervention in the region could push crude prices further to the upside despite the current downtrend in the market.
After releasing its earnings results, FedEx saw a significant drop due to a disappointing revenue outlook for the fiscal year. Traders could turn attention to Micron’s earnings results which could affect expectations regarding the technology sector to a certain extent.
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