The Dow futures gained 0.13% overnight, riding momentum from mega-cap earnings beats. Market technicians cite bullish engulfing patterns on hourly charts, providing short-term optimism for index tracking funds. As the S&P 500, Dow Jones, and Nasdaq Composite have soared to rarified territory, so have stock valuations . With the rise of artificial intelligence (AI) fueling extraordinary growth for Wall Street's most influential businesses, investors have, collectively, been willing to turn a blind eye to historical valuation markers. "We do see the prospects for an upside breakout later this year and into early 2026," JPMorgan analyst Jason Hunter said Tuesday in a note to clients. "We've suggested using option-based hedging strategies for long exposure, and [we are] only looking to aggressively shift to a more bearish/defensive stance if the market breaks through key trend support." The Dow futures edged higher by 0.08% early Monday, driven by gains in banking stocks after better-than-expected quarterly earnings. Analysts suggest upside potential if resistance at 39,000 breaks, though global market risk remains a limiting factor for sustained rallies.
