Stock Market Update: Dow Futures Edge Higher Ahead of Powell Speech, Focus on Republican Power Shift

  • Weekly Giveaway for our active users. N50,000 per Week. Do you want to contribute to this community? We are looking for contribution? What is hot right now? Sign up and get in on the ground floor of the newest, fastest growing Nigerian forum!

Samiat

New Member
Nov 12, 2024
12
0
1
U.S. stock futures rose slightly on Thursday as investors awaited a speech by Federal Reserve Chair Jerome Powell, which could provide guidance on the outlook for interest rate cuts. Meanwhile, markets are also assessing the implications of a recent Republican victory that solidifies control across U.S. government branches.

Futures for the Dow Jones Industrial Average (YM=F) gained 0.2%, with S&P 500 futures (ES=F) rising 0.1%. Nasdaq 100 futures (NQ=F) remained mostly flat, following a mixed performance from the major indices the previous day.

Despite a cautious sentiment, stocks remain near record highs as recent consumer inflation data has kept hopes alive for a possible rate cut in December. However, upcoming wholesale inflation and jobless claims data, along with Powell's comments in Texas, could impact this outlook.

Investors will closely watch Powell’s perspective on inflation, as it may indicate whether interest rates will remain higher for an extended period. Additionally, President-elect Donald Trump’s policy direction is being factored into market sentiment, with expectations that his economic agenda could drive prices upward.

The Republican Party's retention of a narrow House majority grants Trump and his party unified control across Washington. This “trifecta” of power is expected to smooth the way for Trump’s ambitious economic plans, which have contributed to a post-election surge in stock prices.

Meanwhile, concerns over Trump’s “America-first” policies have affected Chinese markets, with Hong Kong’s tech sector seeing a significant decline—down as much as 20% from October highs.

On the corporate front, Disney (DIS) exceeded earnings expectations as its streaming division turned profitable. The company's stock rose in premarket trading after both earnings and revenue surpassed Wall Street projections.