Dow Jones, S&P 500, Nasdaq futures hint positive opening on Nov 11; CoreWeave, tech stocks in focus

US equity market futures indicate a largely positive opening on Wednesday, November 11, as Wall Street investors focused on the buying sentiment in tech and AI stocks emerging from the Asian markets amid volatile crude oil prices in the global market.

Dow Jones futures were trading 0.11% higher at 52,371 points ahead of the opening bell on Wednesday’s market, indicating a flat performance amid the overall geopolitical volatility emerging from dynamic cues and developments in West Asia.

The S&P 500 index futures were trading 0.83% higher at 7,607 points ahead of the Wall Street open, while the Nasdaq 100 futures surged 1.8% to trade around 28,355 points ahead of the opening bell.

Equity market investors are set to monitor crude oil prices, along with US Treasury yields, which were at 5% levels, increasing the attractiveness of fixed income bets amid the rising inflation crisis in the American economy.

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US stocks to watch today

The company also raised its full-year guidance, while Q3 revenues were at $3.66 billion, topping market estimates of $3.55 billion.

Oil remains volatile above $93/bbl

Global crude oil prices (Brent) surged to hit a high of $93.61 per barrel (bbl) during the trading session on Wednesday, November 11, as the latest reports suggest that an oil tanker caught fire after hitting a naval mine in the Eastern region of the Strait of Hormuz.

Investing.com data showed that the Brent crude oil prices were trading 1.7% higher at $93.12 per bbl on Wednesday’s market as of 4:34 pm (IST), in comparison to the previous market close of $91.49 per bbl.

Despite the recent pullback in crude prices, the energy rates remained nearly 5% higher on a three-month basis and have gained 42% in the last one-year period.

Media reports also showed that US Secretary of State, Marco Rubio, on Tuesday evening said that there is “no need for major combat operations” in Iran as America’s economic pressure campaign was reportedly working well for the negotiations.

Treasury yields rebound

The US 10-year Treasury note yields rebounded to hit 5% as the CPI inflation increased beyond market expectations due to the higher cost of food, energy and shelter in the economy.

Bureau of Labor Statistics data showed that the consumer price index (CPI) witnessed a 0.4% increase, compared to 0.3% estimates, indicating elevated prices in the US economy.

Will US Fed hike rates?

With the elevated inflation data in the American economy and the resilient job market growth in focus of the US Federal Reserve, the central bank has a tough call to make at its upcoming December meeting next month on whether or not to increase the key benchmark interest rates.

CME Group’s FedWatch tool suggests that the market experts are predicting an 86.5% chance of a 25 basis point rate hike to the range of 4% to 4.25% in the next meeting outcome, while there is a 13.5% potential for a 50 basis point rate hike to 4.25% to 4.5% levels.

Wall Street recap

US equity indices ended lower after the trading session on Tuesday, November 10, as investors focused on the hotter-than-anticipated CPI inflation data for the American economy, which increased the bets of an upcoming US Fed rate hike in the December meeting.

Dow Jones Industrial Average closed 0.30% lower at 52,231.89 points after the trading session on Tuesday, in comparison to 52,389.75 points at the previous equity market close, according to data collected from MarketWatch.

The S&P 500 index ended 0.38% lower at 7,520.93 points after the trading session on November 10, compared to 7,549.94 points at the previous US equity market close.

The tech-heavy Nasdaq 100 closed 0.60% lower at 27,740.80 points after Tuesday’s market session, compared to 27,907.63 points at the previous Wall Street close, as per the exchange data.