Nasdaq futures investing got a boost from stronger-than-expected retail sales data, signaling economic resilience. This has partially eased recession concerns, pushing futures up 0.4% in pre-market trade. It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up. The operational advantages are significant. Rather than negotiating bilateral agreements and managing counterparty risk through complex ISDA agreements, investors can execute custom exposures with the same simplicity as traditional futures contracts. Central counterparty clearing eliminates bilateral risk, while exchange trading provides transparent pricing and regulatory oversight. Nasdaq futures investing sentiment remains cautious despite a 0.25% uptick overnight, as semiconductor ETF inflows hit a four-month high. Analysts note the correlation between chip sector momentum and broader Nasdaq performance, citing strong guidance from Nvidia and Intel.
