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Quiver Morning Markets Wrap

Quiver Editor

S&P 500 (SPY) and Nasdaq (QQQ) futures rose in a record-breaking Wall Street rally on Wednesday, driven by continued strength in heavily weighted stocks. Federal Reserve Chair Jerome Powell's remarks and crucial inflation data set to be released this week are expected to provide further direction. AI-chip favorite Nvidia climbed 1.1% in premarket trading, following a near three-week high in the previous session. Other chip stocks, including Arm Holdings and Micron Technology, gained around 1% each, while U.S.-listed shares of Taiwan Semiconductor Manufacturing (TSM) rose 2% after its second-quarter revenue beat estimates.

All the "Magnificent Seven" stocks traded higher as U.S. Treasury yields fell. Meta (META), Apple (AAPL), Alphabet (GOOGL), and Microsoft (MSFT) were up around 0.4% each. Tesla (TSLA) edged up 0.5% after HSBC increased its price target on the EV maker's stock, which recorded its longest winning streak of 10 sessions this year on Tuesday. The group of seven stocks has been the primary driver behind Wall Street's rally this year, though the broader market has lagged, leading some market watchers to question the sustainability of equity gains and call for greater diversification.

Market Overview:
  • S&P 500 and Nasdaq futures rise amid rally.
  • Nvidia gains 1.1% in premarket trading.
  • TSMC's Q2 revenue beats estimates, shares up 2%.
Key Points:
  • "Magnificent Seven" stocks drive market gains.
  • U.S. Treasury yields fall as stocks rise.
  • Jerome Powell's comments boost rate cut hopes.
Looking Ahead:
  • Upcoming U.S. inflation data critical.
  • Second-quarter earnings season kicks off.
  • Key test for megacaps' valuations.

The benchmark S&P 500 closed at an all-time high for the fifth consecutive session on Tuesday, while the tech-heavy Nasdaq notched its sixth record closing high. Hopes for an interest-rate cut in September were bolstered by Jerome Powell's comments that the U.S. was "no longer an overheated economy." However, Powell refrained from committing to a timeline for rate cuts in his testimony to Congress. He is set to appear before the House Financial Services Committee at 10 a.m. ET for further questioning.

Attention will now shift to U.S. inflation data this week, with the Consumer Price Index due on Thursday and the Producer Price Index report on Friday. The second-quarter earnings season, beginning with major banks reporting on Friday, will be a key test for whether high-flying megacaps can justify their expensive valuations and continue their strong performance. Gene-sequencing equipment maker Illumina jumped 3.7% on plans to acquire Fluent BioSciences. Goodyear Tire (GT) gained 2% after reports that Japan's Yokohama Rubber was in talks to buy its off-road tire business for at least $1 billion.

About the Author

David Love is an editor at Quiver Quantitative, with a focus on global markets and breaking news. Prior to joining Quiver, David was the CEO of Winter Haven Capital.

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