Dow Jones futures advance as Fed rate hike expectations cool
Dow Jones futures gain by 0.39% to trade near 51,890 during European hours on Wednesday. Meanwhile, S&P 500 futures advance by 0.23% to trade around 7,750, while Nasdaq 100 futures rise 0.17% to trade near 30,660.
US stock futures experienced a 0.39% gain, reaching near 51,890 during European hours on Wednesday. S&P 500 futures climbed 0.23% to trade around 7,750, while Nasdaq 100 futures surged 0.17% to trade near 30,660. The cool-down in Federal Reserve (Fed) rate hike expectations, following dovish remarks from New York Fed President John Williams, buoyed the market.
Williams stated that an additional rate increase later in the year might be suitable if the economy progresses as expected, but there's no urgent need following the September policy meeting. Consequently, the probability of an October rate hike dropped to roughly 45% as per the CME FedWatch Tool, down from 70.9% just a day before.
Investors are now focusing on Wednesday's Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation gauge, before looking ahead to Friday's Nonfarm Payrolls report.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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