Single-Stock Futures Recover While Nasdaq Struggles

Single-stock futures have experienced a modest recovery following a few days of underperformance. Meanwhile, the Nasdaq has endured a persistent four-day decline. During this period, single-stock futures for the Dow Jones Industrial Average have shown an increase. Futures for the Nasdaq 100 and the S&P 500 have seen gains of 0.70% and 0.06%, respectively. However, major individual stocks are not faring as well in comparison.

All three major stock indices have declined during this time frame. The Dow Jones and the S&P 500 have both dropped by 0.80%, while the Nasdaq has experienced a 1.00% decline. This suggests that the technology sector may be facing the most significant challenges during this period.

Apple’s Recent Stock Struggles Amidst Market Resilience

One notable example is Apple, which has had a lacklustre start to the year, with the company’s stocks falling by 4.00% in just the past week. This contrasts with the relatively stable performance of sustainable futures. Some speculate that this could be due to an overvaluation of major tech companies. Additionally, there are indications that the Federal Reserve is planning to implement rate cuts in the coming months, which will undoubtedly impact investment opportunities as time progresses.

This development appears somewhat anticipated. The past year witnessed a significant stock market rally, with sustainable futures performing well. In 2023 alone, the S&P 500 rose by 24.00%, a level of performance not seen since 2004. The Nasdaq’s performance was even more remarkable, with a 43.00% increase, marking its best performance in three years. After such a remarkable run, it’s reasonable to expect some market resistance.

Further economic data is expected to be released soon, which will likely have additional effects on the markets and the hot futures. The private payrolls report for December is scheduled to be released on Thursday, with economists estimating an increase of around 130,000 for the month.