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US Futures Rise, Dow Seeks 8th Consecutive Win as Rate Cut Hopes Abound
U.S. stock futures rose on Friday, setting the Dow up for an eighth consecutive 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%, with the S&P 500 (ES=F) futures also gained 0.3% in the wake of closing above 5,200 for the first time in a month. Contracts on the tech-heavy Nasdaq 100 (QN=F) rose 0.4%.
The blue-chip Dow rose, marking its longest winning streak this year, as stocks recovered from the April slump. Growing conviction that the Federal Reserve may cut interest rates sooner than expected – given recent signals on one job market cooling – boosted the rally.
See more information: How does the job market affect inflation?
Given this, investors will be listening closely to speeches from a packed group of Fed speakers on Friday for more information on the timing, pace and chances of monetary policy easing. Michelle Bowman, Neel Kashkari and Austan Goolsbee are among those scheduled to appear.
Earlier, Atlanta Fed chief Raphael Bostic said that sees a single rate cut later this year, but repeated fellow officer Mary Daly’s preference by waiting for a more robust signal that price pressures are easing.
On the corporate front, TSMC (TSM) shares soared after the Taiwanese contract chipmaking giant said its sales jumped 60% in April. He credited sustained demand for AI combined with a renaissance in consumer electronics such as smartphones.
Live updates2
- Friday, May 10, 2024 at 1:37 pm GMT+2
Travel Trends
Citi is doing a little profit mining today by pointing out these AirBNB notes (ABNB) call this week:
“Nights booked in Paris during the Summer Olympics are 5x higher than last year, while Germany is seeing a similar trend for the Euros this summer, with nights booked almost 2x higher than last year.”
Morning market statistics to know
The good vibes in the markets continue and happiness is starting to increase.
The S&P 500 remains on track for a third consecutive weekly gain for the first time since February. Furthermore, Deutsche Bank points out that this was the strongest performance for the S&P 500 in six sessions this year so far. The S&P 500 is up a solid 3.9% since its recent low on May 1.
