Stock Futures Flat as S&P 500 (SPX) Hovers Near Record High
U.S. stock futures were flat Thursday night as investors watched major indexes near record highs and awaited key inflation data. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 0.03%, 0.04%, and 0.03%, respectively, at 8:40 p.m. EST, June 26.
Confident Investing Starts Here:
Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
In Thursday's trading, the stock market posted solid gains, with both the S&P 500 and Nasdaq 100 closing near all-time highs. The S&P 500 rose 0.80%, the Nasdaq 100 added 0.94%, and the Dow Jones climbed about 0.9%.
On Friday, all eyes will be on the May reading of the personal consumption expenditures (PCE) price index, a key inflation gauge.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
42 minutes ago
- Yahoo
Prediction: This Artificial Intelligence (AI) Stock Will Outperform the Market for the Next Decade
The S&P 500's strong performance over the past few years may dampen the market's returns over the coming decade. Continued AI expenditures bode well for Nvidia's growth. Nvidia's reasonable valuation makes it a strong candidate to continue outperforming the broader market. 10 stocks we like better than Nvidia › The start of the artificial intelligence (AI) boom lifted the broader stock market out of a slump in late 2022. It's been a mostly fun ride since then, and the reality is that AI is only getting started. Experts widely believe that AI technology will create trillions of dollars in economic value over the coming decades and make new industries possible, and that likely means wealth for those who own the right stocks. Thus far, Nvidia (NASDAQ: NVDA) has been a humongous AI winner. The stock has returned an eye-popping 956% since the start of 2023. But why stop there? I predict that Nvidia will continue to outperform the broader market (S&P 500 index) over the next decade, and it's for some straightforward reasons why. While I don't think Nvidia's stock will rise another 956% over less than three years, outperforming the market boils down to what Nvidia is likely to do versus the S&P 500. Some historical data can help paint a picture of how the popular U.S. market index might perform over the next decade. The AI-driven rally over the past few years has baked some future growth into the broader stock market, as evidenced by an increasingly higher valuation. The S&P 500 currently trades at a forward price-to-earnings (P/E) ratio of just under 22. Earlier this year, Charles Schwab, using data from Bloomberg, published a report that plotted the S&P 500's 10-year performance from various starting valuations throughout history. Generally speaking, the higher the S&P 500's initial valuation, the worse the market tends to perform over the subsequent decade, and vice versa. That shouldn't be a shock; overpaying for stocks often has that effect. Many decades that began with the S&P 500 at similar valuations to its current level have produced little to no returns, and in some cases, even negative returns. That doesn't guarantee the market will do poorly over the next 10 years. For example, AI could drive higher earnings growth over the next decade. Still, at the very least, history suggests the market's expensive valuation could weigh on returns over the coming years. Now that you know what Nvidia is up against, it's time to see why the company could continue to thrive. Simply put, a generational investment cycle is underway in AI today. Companies are investing billions of dollars in data centers and other areas to develop and train more advanced AI models and utilize them on a worldwide scale. According to McKinsey & Company, data center expenditures alone could top $7 trillion by 2030. Nvidia has come to dominate the market for AI chips used in data centers, with an estimated 92% market share. Even if competitors chip away at that high market share over time, it's difficult to envision Nvidia falling off the map at this point. The company's hardware and CUDA programming platform have proven a formidable competitive moat. In the future, Nvidia will have the opportunity to participate in emerging industries that AI makes feasible, including humanoid robotics, a potentially massive opportunity that CEO Jensen Huang is already well aware of. Often, when a stock's value increases rapidly, it inflates its valuation and diminishes its future potential. That could be a concern with a stock like Palantir Technologies. But Nvidia is a rare exception. The company's revenue and earnings have mostly kept up with the stock price: Analysts estimate Nvidia will grow earnings by an average of nearly 29% annually over the long term, which is plenty of growth to justify the stock's current P/E ratio of 47. In other words, Nvidia's valuation leaves ample room for business growth to translate to investment returns. Unless Nvidia's business implodes and falls well short of expectations, there's a good chance that Nvidia produces double-digit annualized returns over the next decade, even if growth falls a little short of current long-term estimates. When you compare that to an expensive S&P 500-themed ETF and what historical data says about similar instances (lower future returns), it becomes clear that Nvidia can continue to outperform the broader market. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,731!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $945,846!* Now, it's worth noting Stock Advisor's total average return is 818% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Charles Schwab is an advertising partner of Motley Fool Money. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool recommends Charles Schwab and recommends the following options: short June 2025 $85 calls on Charles Schwab. The Motley Fool has a disclosure policy. Prediction: This Artificial Intelligence (AI) Stock Will Outperform the Market for the Next Decade was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
The open road ahead for investors: Morning Brief
SPACS are back. Bitcoin's riding high. Nvidia's (NVDA) market cap is $3.8 trillion. Imminent or at least soonish rate cuts are back on the table. And the S&P 500 (^GSPC) is flirting with a new closing record amid tech optimism. Stripped of context and isolated from worrisome headlines, you'd think the market was operating in a different time period. But here we are. The news environment and political moment matter, of course, as this latest bout of unleashed animal spirits is a reaction to shrinking negative catalysts and the dissolving of some of the most troublesome uncertainties. The current pivot back to 2024 market narratives has been a sharp one, and the week's Fed drama was bolstered by a pair of readings Thursday: A weaker first quarter GDP estimate than was previously reported and fresh labor data bolstered the case that it's getting tougher for people out of a job to find work. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy The updates appeared to convince more investors that the Fed will speed up rate-cutting plans to address deteriorating economic conditions. Market bets are welcoming the "bad news" with open arms because it means there's a chance the first rate cut could arrive as soon as July, and if not, almost certainly by September, and because that "bad news" comes as the unemployment rate is still — as Powell is wont to remind the public — at a historically low 4.2%. The dovish turn coincides with a sentiment shift that the tariff impact will be more muted than originally thought. And market optimism has been jolted as Wall Street interprets the hostilities between the US and Iran as on a path to deescalation. "The stock market is back at record highs as various uncertainties start to fade," said Paul Stanley, chief investment officer at Granite Bay Wealth Management, in a note Thursday. "The market is betting on continued progress on trade and a de-escalation of tensions in the Middle East is giving investors confidence." But as Stanley and others point out, even as the market reaches for new highs, it's unclear what the next major catalyst could be with last quarter's major obstacles out of the way. If so much of the positive momentum flowed from the collapse of worst-case scenarios, focus now goes to the positive ones. And there certainly are plenty to count. Fed cut speculation could turn into an actual Fed cut — or Fed cuts. The Magnificent Seven could get their mojo back and turn around a rough year. More trade deals could emerge instead of trade war pauses. That's one way to look at it. But things can obviously keep trucking along even when the drama dies down. Conditions have been so volatile that it's easy to forget earnings growth and the AI story were more than enough to power the market for a good while. When volatility drops, the market's rise almost seems gravitational. With a clearer playing field, what's to stop that from happening again? Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on X @hshaban. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
an hour ago
- Bloomberg
S&P 500 Rally Faces Key Test as Profit Engine Is Seen Sputtering
The S&P 500 Index is on the cusp of a record high but with earnings season just weeks away, the foundation of the rally is about to get a major test. With tariff headwinds still a concern, Wall Street sees profit growth of 2.8% year-over-year for the second quarter for the benchmark, according to data compiled by Bloomberg Intelligence. That would be the smallest jump in two years. Adding to the concern, only six of the 11 S&P 500 sectors are projected to post a bump in earnings, the fewest since the first quarter of 2023, estimates compiled by Yardeni Research show.
