Dow futures remain steady amid rising oil, diminishing Fed cut odds
Dow Jones futures are steady around 54,150 during European hours on Monday. Meanwhile, S&P 500 futures gain 0.16% to trade near 7,790 and Nasdaq 100 futures gain 0.39%, trading near 29,950.
During European trading hours on Monday, Dow Jones futures remained around 54,150, while S&P 500 futures increased by 0.16% to near 7,790, and Nasdaq 100 futures rose by 0.39%, approaching 29,950. Stock futures experienced mixed performance as investors remained cautious due to climbing crude prices and dwindling expectations for a deal to reopen the Strait of Hormuz.
The ongoing US-Iran conflict and heightened Middle East tensions continue to fuel geopolitical uncertainty, keeping inflation risks and interest rate prospects at the forefront of market concerns. In July, the US Nonfarm Payrolls (NFP) unexpectedly fell by 23,000, while downward revisions to June's figures dropped to 20,000, signaling weakening labor market conditions.
The CME FedWatch Tool indicates a near 44% likelihood of a 25-basis-point interest rate hike in September, down from 67% a week prior. Societe Generale's Kenneth Broux points out that the latest US labor data has significantly altered the policy discussion, suggesting that only one hike remains for December. Investors are also focusing on upcoming US inflation data.
Major AI-sector companies such as Applied Materials, Cisco, and CoreWeave will release earnings reports. The Dow Jones Industrial Average (DJIA) consists of the 30 most traded stocks in the US, and its performance is driven by company earnings reports, US and global macroeconomic data, and interest rates set by the Federal Reserve (Fed).
Dow Theory helps identify the primary trend of the stock market, and trade strategies include using ETFs, futures contracts, options, and mutual funds.
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