Futures Dip As Record-Breaking Rally Runs Out Of Steam

Market Overview - US equity futures are slightly lower, with small caps lagging as the stock rally appears to be losing momentum, while major indexes reached all-time highs [1] - The S&P 500 futures fell by 0.1%, while Nasdaq 100 futures remained positive due to strong tech performance, particularly from Microsoft [1] - European stocks showed subdued performance as investors await the Federal Reserve meeting next week, with the Stoxx Europe 600 Index little changed [7] Company Performance - Microsoft shares rose by 1% in premarket trading after avoiding a significant antitrust penalty from the EU, leading the Magnificent 7 stocks [3] - Adobe's stock increased by approximately 3% following a strong quarterly revenue outlook, indicating positive returns from AI investments [4] - Alaska Air gained 2% after receiving a buy rating upgrade from UBS, achieving a clean sweep of buy ratings among analysts [4] - Array Technologies saw a decline of 5% after being downgraded to underperform by BofA due to tariff impacts [4] - RH's shares fell by 8% after the company reduced its full-year sales outlook, citing new US tariffs affecting its seasonal catalog [4] - Super Micro Computer's stock rose by 5% after announcing the availability of its Nvidia Blackwell Ultra solutions [4] - Warner Bros. Discovery shares increased by 6%, continuing a significant rally after news of a potential bid from Paramount Skydance [4] Economic Indicators - Analysts expect small caps to outperform larger indices over the next twelve months, with a potential 20% advance in the Russell 2000 compared to an 11% increase in the S&P 500 [6] - The market anticipates between two to three quarter-point rate cuts by the Federal Reserve by year-end, with some traders betting on a half-point cut next week [3][5] Commodity and Currency Movements - Commodities showed mixed results, with oil and base metals prices rising, while precious metals experienced declines [1][12] - The dollar rebounded from previous losses, with the yen lagging behind G-10 currency peers [10] Geopolitical and Trade Developments - US Treasury Secretary Scott Bessent is set to meet with Chinese Vice Premier He Lifeng next week to discuss trade and economic issues [21] - The US is pressuring G7 countries to impose higher tariffs on India and China regarding Russian oil purchases, which may impact market sentiment [17][37]