U.S. stock futures edged higher on Thursday as investors awaited a speech from Jerome Powell to set the tone for rate cuts and assess the impact of a Republican power grab.
Dow Jones Industrial Average futures (YM=F) rose 0.2%, while S&P 500 futures (ES=F) rose 0.1%. Contracts on the Nasdaq 100 (NQ=F) were little changed and had a mixed day for the three major indicators.
While sentiment is subdued, stocks are still high near records after the latest consumer inflation data raised hopes of a rate cut in December. Lectures on widespread inflation and later jobless benefits could test that optimism, as did Powell when he spoke in Texas.
The emphasis is on how the chairman of the Federal Reserve sees inflation developing, now that investors estimate the likelihood that interest rates will remain higher for longer. The market is already weighing the potential upward pressure on prices from the policies of newly elected President Donald Trump.
Read more: What the Fed’s interest rate cut means for bank accounts, CDs, loans and credit cards
Republicans retained their narrow majority in the House of Representatives and gave Trump and his party a ‘trifecta’: unified control of power across Washington. The measure limits implementation of the new president’s aggressive economic agenda, which helped fuel the breakneck post-election rally in stocks.
Concerns about Trump’s America-first plans have helped push Chinese shares down as much as 20% from their October highs in Hong Kong, where tech was hardest hit.
On the corporate side, Disney’s (DIS) quarterly earnings beat expectations, while its streaming unit turned a profit. The stock jumped in premarket trading after sales also exceeded Wall Street expectations.
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