US Stock Market Futures Rise: Fed Rate Cut Prospects and Tech Stocks Lead Gains

US Stock Market Futures Rise on Fed Rate Cut Expectations and Tech Stock Momentum

Team FS

10/Jul/2024

Key Points:

1: Fed Rate Cut Expectations: Traders anticipate two rate reductions this year, with September seen as likely.

2: Tech Stock Momentum: Nvidia rises 2% premarket; Tesla heads for 11th gain session; Microsoft, Apple, Amazon, Meta also gain.

3: Powell's Testimony: Fed Chair Powell sees progress on inflation; labor market not inflationary.

US stock market futures are showing gains today as investors react to Federal Reserve Chair Jerome Powell's recent Congressional testimony. Powell emphasized that any decision to cut interest rates hinges on sustained progress towards the Fed's inflation target of 2%. While noting improvements in inflation, Powell underscored that the current labor market does not pose broad inflationary pressures.

Traders are pricing in a high probability of two rate cuts this year, particularly eyeing a potential move in September, with odds standing at approximately 75%. This optimistic outlook is driving bullish sentiment in the futures market.

In premarket trading, tech stocks are leading the gains: Nvidia is up nearly 2%, supported by positive analyst sentiment; Tesla is poised for its 11th consecutive session of gains following an increased price target from Goldman Sachs. Similarly, tech giants Microsoft, Apple, Amazon, and Meta are also showing upward momentum before the opening bell, reflecting strong investor confidence in the sector.

Today's trading session is pivotal, with market participants closely monitoring developments in monetary policy and corporate earnings trends. The focus remains on how economic data and Fed communications shape market expectations moving forward.

Also Read : Indian Stock Market Falls as Investors Book Profits in Key Heavyweight Stocks

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US Stock Market Futures Rise on Fed Rate Cut Expectations and Tech Stock Momentum

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