S&P 500 Futures Climb as Investors Shrug Off Inflation Risks
Resilient profits and lower oil prices lifted futures, while large investor sales of S&P 500 contracts pointed to mixed positioning.
Key takeaways
- S&P 500 futures rose 0.5%, with the index on track for its first record in two months.
- Non-dealers sold almost $70 billion of S&P 500 futures over six weeks.
- Nvidia shares have gained 28% this year, according to the article.
S&P 500 futures rose 0.5%, putting the index on track for its first record high in two months. The benchmark was poised for a fourth straight advance as investors looked past inflation concerns.
Resilient corporate profits and a pullback in oil prices have supported the rally. The S&P 500 has advanced about 14% this year, helped by enthusiasm for artificial intelligence and an economy that has so far avoided a significant slowdown.
Investor positioning tells a more complicated story. Non-dealers sold almost $70 billion of S&P 500 futures over six weeks, one of the largest pullbacks in roughly 15 years, according to an analysis of CFTC data. Yet the index barely moved over that period. Citigroup strategists said positioning in Nasdaq 100 futures improved sharply, while investors continued adding short positions in Russell 2000 futures.
Semiconductor shares have led the market this year. Nvidia has gained 28%, adding about $1.2 trillion to its market value, while AMD Chief Executive Lisa Su said chip demand is likely to remain “very high” for the next several years.
This article was produced with the help of AI technology. Source: Yahoo Finance
