Stock futures are little changed after S&P 500 ends 3-day decline: Live updates

Source: NYSE

Stock futures hovered near the flatline Tuesday evening after the S&P 500 rebounded from a rough start to the week.

S&P 500 futures hovered pulled back 0.03, while Nasdaq 100 futures hovered near the flatline. Futures tied to the Dow Jones Industrial Average ticked lower by 0.1%.

In after-hours action, FedEx popped 14% after issuing adjusted earnings that surpassed estimates in the fiscal fourth quarter. Electric vehicle manufacturer Rivian Automotive soared 46% after Volkswagen announced it would invest up to $5 billion in the company.

In Tuesday's regular trading, both the S&P 500 and the Nasdaq Composite ended three days of declines, buoyed by a bounce in Nvidia shares. The 30-stock Dow was the laggard of the three major averages, sliding nearly 300 points.

Nvidia's jump of nearly 7% on Tuesday also marked its first positive session after three days of losses. The artificial intelligence darling's market cap gives it tremendous sway over the S&P 500, and its 154% surge in 2024 has raised concerns over a lack of breadth in this year's rally.

"We still think it's too early to write off the rest of the market in favor of the large-cap tech and Nvidia especially," Bespoke Investment Group co-founder Paul Hickey told CNBC's "Closing Bell: Overtime" on Tuesday. "We look for the market to broaden out, but it's not necessarily a binary choice between megacaps and smaller caps, but more bias going forward to looking at these other companies in the S&P 500."

Wall Street will shift its attention toward fresh inflation data on Friday with the release of May's personal consumption expenditures price index. The Federal Reserve keeps a close eye on this metric, its preferred inflation gauge, and investors remain hopeful for the prospect of rate cuts.

Quarterly results from General Mills and Paychex are due Wednesday morning. Micron Technology will report earnings that afternoon.

Poor breadth is creating buying opportunities, Charles Schwab's Liz Ann Sonders says

Liz Ann Sonders, chief investment strategist at Charles Schwab, expects that weakness in individual stocks is creating buying opportunities.

The investment chief noted that resilience this year on the index level has disguised poor breadth below the surface. She noted, for example, that a greater share of constituents in the Nasdaq Composite are below their 200-day moving averages than in the S&P 500. For investors, she expects this means the Nasdaq can outperform the S&P 500 on a relative basis going forward.

It also suggests that investors can find individual buying opportunities, she said, though she urged investors to focus on quality companies with strong balance sheets and cash flow.

"I think there's opportunities being created at the individual stock level because of how much weaker breadth has been for the average stock," Sonders told CNBC's "Closing Bell" on Tuesday.

"I think they should stay high quality," she added.

— Sarah Min

Nvidia’s forward P/E, market cap could surge by year’s end, EMJ Capital's Eric Jackson says

Nvidia is poised to continue its monster run, according to EMJ Capital's Eric Jackson. The hedge fund manager sees its forward price-to-earnings ratio hitting close to 70 and rising to $6 trillion in market cap at $250 per share by year's end.

"This is a highflier," the firm's founder and president told CNBC's "Closing Bell" on Tuesday, adding that the euphoria still has not caught up yet. He sees euphoria being reflected in a "lofty" valuation in the second half of 2024 when sales from its Blackwell chip start to come in and the future release of its next-generation Rubin chips generates anticipation.

"Nobody's catching up to them," he continued. "It's years away from that happening. They're going to take advantage of that lead that they have."

Shares of the chipmaker rose about 6.8% during Tuesday's trading session, and its forward P/E was at 47.47. The stock is up 154.6% this year.

"We're below the mean for the last five years, so even though the stock has done so well, it is still relatively cheap compared to where it's traded in the past," he said.

— Sean Conlon

Stock futures are little changed

Stock futures were little changed on Tuesday, following the S&P 500's rebound from a three-session slide.

Futures tied to the broad market index ticked down 0.06%. Nasdaq 100 futures pulled back 0.02%, while Dow Jones Industrial Average futures slipped 62 points, or 0.1%.

— Brian Evans