U.S. stock futures held steady near records on Thursday, looking ahead to a return to the Trump rally, as investors gauged the next president’s likely impact on markets and waited for the Federal Reserve’s policy decision.
Dow Jones Industrial Average futures (YM=F) rose 0.1% after a 1,500-point gain that marked the blue chip gauge’s best day since 2022. S&P 500 futures (ES=F) also rose 0.1%, while contracts on the tech-heavy Nasdaq 100 (NQ=F) rose about 0.2%.
Moods are still upbeat after Donald Trump’s victory in the presidential election, sending all three major stock prices to new all-time highs on Wednesday. His plans for corporate tax cuts and deregulation have fueled optimism about a boost to the economy that will impact stocks.
But some on Wall Street see signs of a relief rally as Trump’s decisive victory also ended concerns about a contentious vote. They suggest stock gains could slow as the euphoria fades.
The Fed’s interest rate decision – usually a dominant event for the markets – takes a back seat amid the fallout from the election. For starters, investors see a 25 basis point rate cut as a near certainty at the end of policymakers’ two-day meeting later Thursday. Instead, the focus is on what Chairman Jerome Powell might reveal about the future policy path, especially as Trump’s return could mean rates stay higher for longer.
Available soon
Live stock market coverage for Thursday, November 7, 2024
