U.S. Equities Point to Potential Record High as Technology Sector Gains Momentum

The S&P 500 could be on its way to another record high on Friday, as indicated by U.S. equity index futures. The technology sector is expected to experience its third consecutive winning session. Investors are eagerly awaiting the release of fresh economic data.

Stock-index futures trading update

• S&P 500 futures (ES00) rose 5 points to 5,051.50
• Dow Jones Industrial Average futures (YM00) fell 45 points, or 0.1%, to 38,813
• Nasdaq-100 futures (NQ00) climbed 85.75 points, or 0.4%, to 17,998.50

On Thursday, the S&P 500 reached a new high of 5,029.73, surpassing its previous record close from last week. The Dow Jones Industrial Average gained 0.9% and the Nasdaq Composite rose 0.3% to 38,773.12 and 15,906.17, respectively.

The S&P 500's latest record came amidst mixed manufacturing data and a significant drop in January retail sales. This has tempered expectations regarding the pace of Federal Reserve interest rate cuts following a concerning inflation report earlier in the week.

"However, had retail sales remained strong, investors would have been just as pleased with a soft landing for the U.S. economy," stated Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

Economic Data Losing Meaning as U.S. Stock Markets Stay Optimistic

The U.S. stock markets continue to thrive despite the significance of economic data being questioned. Regardless of what the data reveals, a positive narrative is consistently found to fuel the market's upward momentum. This unwavering optimism can be attributed to the undeniable impact of rate cuts that shine brightly at the end of the tunnel.

A Day Packed with Market-Driving Data

Investors brace themselves for another eventful day as various data releases are scheduled. The day starts off with the eagerly anticipated January housing starts and producer price index, both slated for 8:30 a.m. Experts predict a 0.1% decline in the producer price index. At 10 a.m., the University of Michigan's preliminary consumer sentiment survey for February will be unveiled.

Insights from Influential Figures

Throughout the day, notable figures from the Federal Reserve will share their perspectives. Fed Vice Chair for Supervision, Michael Barr, is expected to speak at 9:10 a.m., while San Francisco President Mary Daly is set to take the stage at 12:10 p.m., providing valuable insights that could impact market dynamics.

Technology Stocks Holding Strong

On Friday, technology stocks take the lead, with the Nasdaq demonstrating its third consecutive positive session. However, despite this positive trend, it remains down by 0.5% for the week as of Thursday.

Shares of Applied Materials Inc. make a notable premarket surge of 13%. The chip-equipment company impresses investors with its optimistic results and guidance following Thursday's closing bell. Additionally, Tesla Inc. witnesses a modest 2% increase in premarket trade, while Nvidia Corp. experiences a 1.5% surge. Investors eagerly await Nvidia's fourth-quarterly results to be announced in the upcoming week.

Stay tuned for more updates as the market unfolds its powerful narrative.