S&P 500 and Nasdaq Show Small Gains In Over-Night Trading
S&P 500 futures rose slightly in early trading on Tuesday after Wall Street notched its fifth consecutive month of gains. Apple and Tesla were jumping in the premarket after rising on Monday following stock splits. Apple gained 2.5% in the premarket. Tesla added more than 6%. Zoom rose more than 27% during premarket trading after reporting revenue more than quadrupled compared to the same quarter a year ago.
The S&P 500 and the Dow set records in August that haven't been hit in more than 30 years. It jumped 7.6% in August showing gains for its 5th straight month in a row and its biggest August gain since 1984. The S&P 500 also rose 7%, clinching its best August since 1986. The tech-heavy Nasdaq jumped 9.6% in August, its best monthly performance since 2000.
“While growth and momentum names continue to be the primary driver of returns, value and cyclicals have begun to participate,” Mark Hackett, Nationwide’s chief of investment research, said in a note on Monday.
Walmart shares gained 1% in premarket trading. Royal Caribbean and MGM Resorts both gained about 40%, while FedEx and Gap jumped 30% each in August. Delta Air Lines and Norwegian Cruise Line were also among the leaders in August. Many of those shares were down slightly in Tuesday premarket trading.
Investors are awaiting a key monthly jobs report on Friday, economists polled by Dow Jones forecast that 1.255 million jobs were created in August.
“With regard to US jobs, it’s important to keep in mind that the Fed’s new inflation target policy may impact how the market receives this news,” Kristina Hooper, Invesco’s chief global market strategist, said in a note.
“Normally, a good jobs report would spark concern that the Fed might tighten in order to proactively combat inflation and economic overheating. That concern has gone by the wayside, at least for now, with the Fed’s new policy,” Hooper said.