Stock futures experienced a surge on Thursday, driven by growing investor confidence in the Federal Reserve’s imminent conclusion of its rate-hike campaign. The Dow Jones Industrial Average futures (^DJI) saw a 0.5% increase, while S&P 500 futures (^GSPC) rose by 0.7%. Leading the charge were the tech-heavy Nasdaq 100 futures (^NDX), boasting an impressive 1.1% uptick.
This positive momentum follows the Federal Reserve’s decision on Wednesday to maintain interest rates at their highest level in over two decades, a move that elicited a favorable response from the market. Federal Reserve Chair Jerome Powell’s remarks, hinting at a lack of rate hikes in December, bolstered overall market sentiment.
According to the CME FedWatch Tool, traders are presently factoring in an 85 percent probability that the Fed will refrain from raising rates for the remainder of the year, marking a significant increase from the 59 percent estimate just prior to the policymaker’s meeting.
Attention has now shifted towards the upcoming corporate earnings season, with Apple’s (AAPL) quarterly report taking center stage in the afternoon lineup of results. Investors are closely monitoring developments related to iPhone sales in China and global consumer spending.
Global tech giants Microsoft and Google delivered mixed earnings results, while Starbucks (SBUX) witnessed a surge in pre-market trading, following a beat on revenue and earnings estimates. Additionally, Shopify (SHOP) returned to profitability, with shares soaring by 15%, a boost attributed to the company’s adoption of AI technology.
As the earnings reports continue to unfold, the question remains whether stock futures will sustain their early-morning gains, contingent on investors’ overall sentiment towards the earnings season. Market participants will be closely analyzing the results and their potential implications for the broader financial landscape.
In conclusion, stock futures remain intricately tied to the trajectory of the rate-hike campaign, with investors attentively gauging its impact on market dynamics.
Source: Yahoo Finance
