On Sunday evening, stock futures displayed a positive trend as investors aimed to capitalize on the S&P 500’s recent achievement of an all-time high on Friday.
Futures linked to the S&P 500, the benchmark index, saw a rise of 0.21%, while Nasdaq 100 futures recorded a gain of 0.57%. Dow Jones Industrial Average futures also showed a modest increase of 51 points or 0.13%.
The previous week witnessed a resurgence in stock markets, with Friday marking a notable milestone as the S&P 500 surpassed both its intraday and closing records set in January 2022. The Dow Jones Industrial Average and the Nasdaq Composite, dominated by tech stocks, also closed higher, positioning all three major indexes in positive territory for the year 2024. This surge officially affirmed Wall Street’s entry into a bull market, originating from the low point in October 2022.
Technology companies particularly stood out within the S&P 500 sectors on Friday, posting a gain of 2.35% for the day and 4% for the week.
The momentum on Wall Street is contingent on the trajectory of the U.S. central bank’s approach to achieving an economic soft landing. Investors are anticipating a series of benchmark interest rate cuts starting in March, though uncertainty lingers regarding the realization of the initial cut.
According to data from the CME Group’s FedWatch Tool as of Friday, investors have revised their expectations, indicating a roughly 47% probability of a Fed rate cut in March. This reflects a significant decrease from the 81% probability recorded a week earlier.
In the upcoming week, investors will closely monitor various economic reports, including gross domestic product (GDP) data scheduled for Thursday and personal consumption expenditures prices on Friday. These reports are anticipated to provide valuable insights into the perspectives of central bank policymakers regarding the future course of monetary policy.
