The stock market opened on a cautious note Wednesday, with futures rising after a tumultuous start to the week. Only the Dow Jones Industrial Average remained in positive territory through the first two trading sessions, highlighting a period of uncertainty for investors. Stock futures showed signs of recovery as the S&P 500 ended a four-day losing streak, with futures advancing 0.5%, Nasdaq-100 futures climbing 0.7%, and Dow futures gaining 0.3% in premarket trading.
Equities have endured a challenging week, exacerbated by fluctuating consumer confidence and market volatility. The Consumer Confidence Index fell by seven points to 98.3 in February, marking its lowest reading since June. This significant drop marks the largest monthly decline since August 2021, as consumers become "pessimistic about future business conditions and less optimistic about future income," according to Stephanie Guichard, the board's senior economist for global indicators.
Amidst these market dynamics, General Motors announced an increase in its quarterly payout to 15 cents per share and unveiled a $6 billion stock repurchase plan. This plan includes $2 billion to be executed in the second quarter. GM CEO Mary Barra commented on the company's strategic focus:
"The GM team's execution continues to be strong across all three pillars of our capital allocation strategy, which are to reinvest in the business for profitable growth, maintain a strong investment grade balance sheet, and return capital to our shareholders."
In other developments, Nvidia is poised to release its fourth-quarter earnings after the bell on Wednesday. Analysts polled by FactSet project $38 billion in sales for Nvidia's final fiscal quarter of 2024, representing a remarkable 72% year-over-year increase. Investors will be keenly watching for Nvidia's performance as it may provide further insight into the broader tech sector's direction.
While stock futures signal potential recovery, the cryptocurrency market showed signs of distress. Bitcoin dipped below $90,000 on Tuesday, its lowest level since November, and is now nearly 20% off its all-time high reached in January. Steven Lubka from Swan Bitcoin highlighted:
"Equities have faced a few difficult sessions over the last week, with top-performing stocks down many times the index, as markets grapple with increased uncertainty under the new administration."