S&P 500 futures extend gains on hopes rate-hike cycle has peaked

Posted by By News Room 2 Min Read

U.S. stock futures rose on Thursday, carrying forward positive momentum on hopes the U.S. rate-hike cycle may have peaked.

What’s happening

  • Dow Jones Industrial Average futures
    YM00,
    +0.37%
    rose 59 points, or 0.2%, to 33410.

  • S&P 500 futures
    ES00,
    +0.55%
    gained 19 points, or 0.4%, to 4275.

  • Nasdaq 100 futures
    NQ00,
    +0.81%
    increased 93 points, or 0.6%, to 14838.

On Wednesday, the Dow Jones Industrial Average
DJIA
rose 222 points, or 0.67%, to 33275, the S&P 500
SPX
increased 44 points, or 1.05%, to 4238, and the Nasdaq Composite
COMP
gained 210 points, or 1.64%, to 13061.

What’s driving markets

Wednesday saw several crucial pieces of information enter the market. Federal Reserve Chair Jerome Powell didn’t commit to a peak in the rate-hike cycle, but his tone was considered by analysts to be on the dovish side, while Treasury refunding was a bit below estimates at $112 billion, with less issuance of 10- and 30-year notes than in August.

Meanwhile, a key forward-looking indicator, the Institute for Supply Management’s manufacturing index, came in well below estimates, as the ADP private-sector employment gauge also surprised to the downside.

“While on the face of it, Powell was trying to come across as hawkish, markets weren’t buying it especially since [Wednesday’s] economic data showed that the U.S. economy appeared to be slowing,” said Michael Hewson, chief market analyst at CMC Markets UK.

Ahead of Friday’s crucial nonfarm payrolls report, the economic calendar includes weekly jobless claims and third-quarter productivity.

Apple
AAPL,
+1.87%
meanwhile will report its earnings after the closing bell.

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