S&P 500 futures rise after best August since 1980s, Tech shares gain, led by Apple, Tesla and Zoom
S&P 500 futures rose slightly in early trading on Tuesday after Wall Street notched its fifth consecutive month of gains.
S&P 500 futures rose 0.2%. Nasdaq-100 futures gained 1%. Futures on the Dow pointed to a breakeven opening.
Tech shares led by Apple and Tesla were jumping in the premarket. The stocks rose on Monday following stock splits that appear to be causing investors to snap up the shares. Apple gained 2.5% in the premarket. Tesla added more than 6%.
Shares of Zoom Video jumped more than 27% during premarket trading after reporting another blowout quarter. The video conferencing company’s revenue more than quadrupled in the fiscal second quarter compared to a year ago.
The S&P 500 and the Dow just wrapped up their best August in more than 30 years. The blue-chip average rallied 7.6% in August for its fifth positive month in a row and its biggest August gain since 1984. The S&P 500 also rose for a fifth month straight, up 7%, clinching its best August since 1986.
The tech-heavy Nasdaq jumped 9.6% in August, posting 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 after it announced its Walmart+ membership program to compete with Amazon Prime.
Along with tech, reopening stocks — cruise line operators, airlines and hotels — had a big August. Royal Caribbean and MGM Resorts both gained about 40%, while FedEx and Gap jumped 30% each. Delta Air Lines and Norwegian Cruise Line were also among the S&P 500 leaders in August. Many of those shares were down slightly in Tuesday premarket trading.
The Dow’s composition changed on Monday with Apple’s 4-for-1 stock split taking effect. Salesforce, Amgen and Honeywell replaced longtime components Exxon Mobil, Pfizer and Raytheon Technologies.
Investors are awaiting a key monthly jobs report on Friday, which is forecast to show payrolls continued to rebound in August. 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.
In a major policy shift, the Federal Reserve announced last week it will allow inflation and employment to run higher than its target before it considers raising interest rates.
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