Monday’s session marked the 3rd record high close in a row for Nasdaq futures and the 5th consecutive green close for S&P 500 futures. Tech giants including Microsoft, Tesla, Zoom, Nvidia and Adobe touched new all-time highs during yesterday’s trading.
Driven by a tech sector which has shown considerable resilience during the outbreak, recent economic data including a record job increase last month has also bolstered investor confidence. Although opening lower this morning, the Nasdaq continues to push forward.
- Micro E-mini Nasdaq Futures (MNQ) | 0.79%
- Micro E-mini S&P 500 Futures (MES) | -0.02%
- Micro E-mini Dow Futures (MYM) | -0.60%
While the Nasdaq is setting records, Dow and S&P bulls look to pare their losses for the year. The S&P is currently about 6% shy of its all-time high from February, and the Dow is roughly 11% short of its peak.
Despite the recent positivity on Wall Street, some analysts warn that the gains may not last. With tens of thousands of new coronavirus cases reported each day, many are concerned about a failed or halted reopening.
“The bad news is that sustaining the pace of recovery will get increasingly difficult from here,” stated Neil Shearing, Group Chief Economist at Capital Economics. Other analysts have suggested the path out of lockdowns will not be a straightforward or easy process.
The chart above, created 100% FREE using NinjaTrader, shows daily price action for Micro E-mini Nasdaq futures since the start of the year. While the Dow and S&P look to wipe their losses for the year, the Nasdaq has since dwarfed its February high.