HomeBusinessUS futures rise, Dow expects eighth win in a row as hopes...

US futures rise, Dow expects eighth win in a row as hopes for interest rate cuts are high

U.S. stock futures rose on Friday, sending the Dow Jones to an eighth straight day of gains, as investors waited for a parade of Fed speakers to test growing confidence that a rate cut is on the way.

Dow Jones Industrial Average (YM=F) futures rose about 0.3%, while S&P 500 (ES=F) futures also rose 0.3% after closing above 5,200 for the first time in a month. Contracts on the tech-heavy Nasdaq 100 (NQ=F) rose 0.4%.

The blue-chip Dow Jones surged higher, posting its longest winning streak this year as stocks staged a comeback from the April doldrums. Growing belief that the Federal Reserve could cut rates sooner than expected – given recent signs of a cooling labor market – has supported the rally.

Read more: What influence does the labor market have on inflation?

That’s why investors will be listening intently to speeches from a packed line of Fed speakers on Friday to better understand the timing, pace and likelihood of policy easing. Michelle Bowman, Neel Kashkari and Austan Goolsbee will appear, among others.

See also  Three ridiculously undervalued stocks you can buy right now by hand in May

Earlier, Atlanta Fed Chief Raphael Bostic said he sees a single rate cut at the end of this year, but he also echoed fellow official Mary Daly’s preference to wait for a stronger signal that price pressures are easing.

On the corporate front, TSMC (TSM) shares rose after the Taiwanese contract chip giant said its sales rose 60% in April. It reported continued demand for AI coupled with a rebound in consumer electronics such as smartphones.

Live2 updates

  • Travel trends

    Citi makes a small earnings call today, pointing out these comments from AirBNB’s (ABNB) call this week:

    “The number of nights booked during the Summer Olympics in Paris is five times higher than this time last year, while Germany is seeing a similar trend for the Euro Cup this summer, with almost twice as many overnight stays as last year.”

  • Morning market statistics to know

    The feel-good atmosphere in the markets continues and happiness starts to increase.

    The S&P 500 remains on track for a third consecutive weekly gain for the first time since February. Additionally, Deutsche Bank points out that this has been the strongest performance for the S&P 500 through six sessions so far this year. The S&P 500 is up a solid 3.9% since its recent low on May 1.

- Advertisement -
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments