US stock futures rose Wednesday night as traders were on the lookout for Washington’s interest rates and protracted turmoil.
The Dow Jones Industrial Average futures contract rose 66 points, or 0.2%. S & P 500 futures rose 0.2% along with Nasdaq 100 futures.
Earlier that day, the S & P 500 and Nasdaq Composite rose 0.2% and 0.4%, respectively. Meanwhile, the Dow closed flat.
The rise in the S & P 500 and Nasdaq on Wednesday came after Intel rose nearly 7% to raise tech stocks. They also followed US interest rates, which eased from the highest levels since March 2020.
Benchmark 10-year bond yields fell to 1.09% per day after reaching a high of 1.18%. The fall in interest rates came as two Fed officials said monetary policy was easy for the foreseeable future.
The Federal Reserve Board of Governors said the central bank would not raise interest rates until inflation reached 2%. “But I don’t want to have a specific date at this point,” said James Bullard, president of the Federal Reserve Bank of St. Louis, saying there will be times when policies need to be strengthened.
Interest rates are rising this year as US fiscal stimulus is expected to increase after the Democratic Party secures a majority in both the House of Representatives and the Senate. Inflation expectations have also risen recently.
“We expect inflation in the United States to be higher than expected in the coming years,” said Adam Royce, assistant economist at Capital Economics. “At the same time, I think investors are overestimating how fast the Fed will enable monetary tightening. The Fed’s new flexible average inflation targeting framework will bring inflation to 2% over the next few years. It suggests that it is possible to exceed.
Investors are also paying attention to Washington for voting for a second impeachment of President Donald Trump, as a bipartisan majority charged him with inciting a riot in the US Capitol last week. ..
Indeed, the market has largely avoided brewing political and civil unrest.
“Usually, risk assets are expected to recede at such events, but the market seems to be focusing on the next administration at this point,” said Bryan Price, head of investment management for the federal financial network. Said. “”
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Equity futures rose following a slight rise on Wednesday
Source link Equity futures rose following a slight rise on Wednesday