Stock Futures Experience Downward Pressure, Testing Sustainability of Wall Street Rally

Early on Tuesday, stock futures encountered downward pressure, hinting at a potential halt in the recent Wall Street rally. Both S&P 500 and Nasdaq 100 futures saw declines of around 0.2%.

Monday saw stocks inching up, marking the tech-heavy Nasdaq Composite's seventh consecutive positive session, a streak not seen since January. Wall Street is currently evaluating the sustainability of last week's rally, which was a stark contrast to the previous weak October, during which the S&P 500 entered correction territory.

Investor sentiment took an optimistic turn following the Federal Reserve's decision to leave interest rates unchanged in their recent meeting, resulting in a decline in Treasury yields and an increase in stock prices. The market is now awaiting comments from more central bank officials, maintaining a sense of anticipation.

Federal Reserve Bank of Minneapolis President Neel Kashkari poured cold water on hopes of imminent rate cuts on Monday, emphasizing that the central bank likely has more work ahead to combat inflation.

Additionally, U.S. Treasury yields rebounded from multi-week lows in the previous session, setting the stage for significant bond auctions this week. The results of these auctions will be closely watched to assess the demand for U.S. government debt and its potential impact on the market.

The price is testing a resistance area above the 15,000 level, awaiting a breakout or comeback. A breakout would indicate the onset of a bullish trend and potentially offer a reentry opportunity in the buying territory.