Futures of U.S. stock markets rose Wednesday night as traders watched interest rates and persistent turmoil in Washington.
Dow Jones Industrial Average futures traded up 46 points, up 0.1%. The S&P 500 futures gained 0.2% and the Nasdaq 100 futures advanced 0.1%.
Earlier in the day, the S&P 500 and Nasdaq Composite gained 0.2% and 0.4%, respectively. Meanwhile, the Dow closed the floor.
Wednesday’s gains for the S&P 500 and Nasdaq came after Intel rallied nearly 7% to lead tech stocks. They also followed US interest rates which fell from the highest levels since March 2020.
The performance of the benchmark ten-year grade fell to 1.09% per day after reaching a high of 1.18%. This decline in rates occurred when two key Federal Reserve officials noted that monetary policy will remain easy in the foreseeable future.
The Fed vice president said the central bank will not raise rates until inflation reaches 2%. Meanwhile, the Fed chairman of St. Louis, James Bullard, noted that there will be a time when politics should be tightened, “but boy, wouldn’t I want to put a specific date on things right now.”
Rates have risen this year amid prospects of increased U.S. fiscal stimulus after Democrats secured majorities in both the House and Senate. Inflation expectations have also risen recently.
“We believe inflation in the United States will be higher than most expect over the next two years,” wrote Adam Hoyes, deputy economist at Capital Economics. “At the same time, we believe investors are overestimating how quickly the Fed will tighten monetary conditions. The Fed’s new flexible inflation targeting framework suggests that it will allow inflation to rise above 2% during a period of the coming years. “
Investors also keep an eye on Washington when members of the House voted to oust President Donald Trump a second time, making him the first U.S. president to be indicted twice, as the bipartisan majority accused him of inciting a riot at the U.S. Capitol last week. .
Of course, the market has largely sparked political and civil concerns.
“Normally, we would expect risky assets to retire during an event like this, but the market seems more focused on the next administration right now,” said Brian Price, head of investment management at the Commonwealth Financial Network. “
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