Market Anticipation Builds Ahead of Powell Speech
As investors eagerly await Jerome Powell’s highly anticipated speech, US stock futures experienced a slight uptick on Thursday. The Dow Jones Industrial Average futures rose 0.2%, while S&P 500 futures edged 0.1% higher. Meanwhile, Nasdaq 100 contracts remained relatively unchanged, following a mixed performance from the three major indices the previous day.
Economic Data Takes Center Stage
Despite the current subdued atmosphere, stocks continue to hover near record highs, buoyed by the latest consumer inflation data, which has fueled hopes for a December rate cut. However, upcoming readings on wholesale inflation and jobless claims may put this optimism to the test. Powell’s speech, in particular, will be closely scrutinized for insights into the Federal Reserve’s stance on inflation and potential rate hikes.
Republican Sweep Sparks Market Reaction
The Republican party’s retention of their slim majority in the House of Representatives has handed President-elect Donald Trump a significant advantage in implementing his economic agenda. This development has contributed to the post-election rally in stocks, as investors weigh the potential impact of Trump’s policies on the economy.
Global Markets React to Political Shift
Chinese stocks, however, have plummeted as much as 20% from their October high in Hong Kong, with the tech sector bearing the brunt of the decline. This downturn is largely attributed to concerns surrounding Trump’s America-first approach.
Corporate Earnings in Focus
Disney’s quarterly earnings report stole the spotlight, with the company’s streaming unit swinging to a profit and revenue exceeding Wall Street expectations. As a result, Disney’s stock surged in premarket trading.
Economic Calendar Highlights
Today’s economic calendar features a range of key releases, including initial jobless claims, the Producer Price Index, import and export prices, industrial production, and the NAHB housing market index.
Notable Earnings Releases
Advance Auto Parts, Applied Materials, JD.com, and Oklo are among the companies scheduled to release their earnings reports today.
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