Stock futures saw modest gains on Monday as market participants continued to anticipate a potential pause in rate hikes by the Fed. Both S&P 500 and Dow Jones Industrial Average futures inched up by approximately 0.2%, while Nasdaq 100 futures posted a slightly stronger uptick of 0.2%.
These advances followed the stock market’s most robust performance of the year, propelled by a cooler-than-expected U.S. jobs growth rate. Investors are now closely eyeing developments in the upcoming week to solidify their expectations of a Fed pause. Several key figures from the Federal Reserve were scheduled to address the market, including Chair Jerome Powell, along with regional Fed presidents John Williams and Raphael Bostic.
However, Morgan Stanley strategist Mike Wilson offered a note of caution, suggesting that the surge in stocks could potentially be attributed to a bear market rally rather than the onset of a sustained upswing. Additionally, a wave of quarterly earnings reports looms on the horizon, with keen interest directed towards figures from industry giants such as Disney, Dish Networks, and Tripadvisor.
Turning to the commodities sector, oil prices gained traction following confirmation from Saudi Arabia and Russia of their commitment to ongoing voluntary production cuts. West Texas Intermediate crude futures and global benchmark Brent crude futures experienced respective upticks of 1.9% and 1.7%.
Overall, the markets maintain a cautiously optimistic outlook regarding the Federal Reserve’s potential conclusion of its rate tightening cycle in the near term. The forthcoming week is poised to be pivotal, with Fed officials’ communications and quarterly earnings reports under intense scrutiny. The recent slowdown in U.S. jobs growth provided a boost to the stock futures, nurturing hopes of a Fed pause in rate hikes. Stock futures exhibited gains, with the S&P 500 and Dow Jones Industrial Average edging up by approximately 0.2%, and the Nasdaq 100 showing a marginally stronger increase of 0.2%. While a flurry of quarterly earnings announcements is imminent, the statements from Chair Jerome Powell and other regional Fed presidents hold the potential to sustain the market’s upward trajectory, should they affirm expectations of a rate hike hiatus.
Source: Yahoo Finance
