Market Optimism Grows Ahead of Fed Chair’s Speech
As the US stock market prepares for a potentially historic day, futures are on the rise, fueled by strong performances from tech giants. The Dow Jones Industrial Average futures have surged 0.5%, or over 200 points, while S&P 500 futures have added 0.3%, building on yesterday’s all-time closing high. The tech-heavy Nasdaq 100 futures are leading the charge, up 0.7%.
Tech Stocks Soar on Earnings Beats
Salesforce, the software maker, has seen its stock price skyrocket by 13% in pre-market trading, thanks to a quarterly revenue beat that has boosted hopes for its AI products. Okta and Marvell have also made significant gains, following well-received earnings reports, setting a positive tone for the tech sector.
Fed Watch: Rate Cut Expectations Rise
All eyes are on Federal Reserve Chair Jerome Powell, who is set to speak in New York later today. Investors are eagerly awaiting clues on what’s next for interest rates, with growing confidence in a December rate cut. Fed officials have signaled support for more easing, and traders see near 74% odds of a 25 basis point cut at the December 18 meeting.
Economic Data Takes Center Stage
Today’s busy schedule of economic releases includes a reading on private payrolls in November, which will provide valuable insights into the labor market. The ADP report comes on the heels of job openings data, which suggested the labor market is softening but not too much. The monthly jobs report, due out on Friday, will be closely watched.
Global Political Turmoil Weighs on Markets
Investors are keeping a watchful eye on political developments in France, where lawmakers will vote on a no-confidence motion that could bring down the government. Meanwhile, South Korea’s president faces impeachment after plunging the country into political crisis by briefly declaring martial law.
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