s&p 500 Eighth Day

Stock Futures Rally as Fed Signals End to Rate-Hike Campaign

Stock futures surged on Thursday, with investors expressing growing confidence that the Federal Reserve was nearing the conclusion of its rate-hike campaign. The Dow Jones Industrial Average (^DJI) futures advanced by 0.5%, while S&P 500 (^GSPC) futures gained 0.7%. Leading the charge were tech-heavy Nasdaq 100 (^NDX) futures, which saw an impressive 1.1% increase.

Wednesday’s close witnessed remarkable gains across the three major indices, following the Federal Reserve’s decision to maintain interest rates at their highest level in over two decades. Market sentiment was largely upbeat, bolstered by Federal Reserve Chair Jerome Powell’s commentary, which hinted at the possibility of no rate hikes in December.

As of the present moment, traders are assigning an 85 percent probability that the Fed will refrain from raising rates this year. This marks a significant shift from the 59 percent probability observed the day before the pivotal policymaker’s meeting, according to data from the CME FedWatch Tool.

Attention has now shifted to the upcoming corporate earnings season, with Apple’s (AAPL) quarterly report taking the spotlight in the afternoon lineup of results. Investors are closely monitoring developments in China’s iPhone market and global consumer spending trends.

Among the tech giants, Microsoft and Google reported a mixed bag of earnings results. Meanwhile, Starbucks (SBUX) experienced a surge in pre-market trading after surpassing revenue and earnings estimates. Shopify (SHOP) also returned to profitability, with its shares soaring by 15% following the company’s adoption of AI technology.

The big question now is whether stock futures can maintain their early-morning gains as earnings results continue to roll in and investors gauge overall sentiment toward the upcoming earnings season.

The optimism in the market can be attributed to the Federal Reserve’s decision to keep interest rates steady. This decision was particularly significant as it marked the continuation of the highest rate levels seen in more than two decades. Federal Reserve Chair Jerome Powell’s comments after the meeting provided a boost to market sentiment, hinting at the likelihood that the Fed might not implement any rate hikes in December.

Traders have quickly adjusted their expectations in response to the Fed’s stance, with an 85 percent probability that the central bank will not raise rates this year. This stands in contrast to the 59 percent probability registered just a day prior to the policymaker’s meeting, based on data from the CME FedWatch Tool.

All eyes are now on the corporate earnings season, and Apple’s quarterly report is stealing the show in the afternoon. Market participants are keenly observing how Apple’s performance in the Chinese iPhone market and global consumer spending trends will impact its results.

In the tech sector, earnings reports from Microsoft and Google have presented a mixed picture, with their performance being closely scrutinized by investors. On the other hand, Starbucks has reason to celebrate, as its shares saw a substantial increase in pre-market trading after the company exceeded revenue and earnings expectations. Shopify also made a strong comeback, with its shares surging by 15% after the company embraced AI technology.

As the earnings season unfolds, the market will closely track these results, and investors will be on the lookout for any emerging trends and sentiment shifts.

In conclusion, the surge in stock futures and the Federal Reserve’s stance on rate-hike signal a pivotal moment for investors navigating the evolving financial landscape.
Source: Yahoo Finance

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