Dow, S&P, Nasdaq futures rise ahead of holiday trading on rate hopes
US stock futures ticked higher on Wednesday as Wall Street looked to extend gains on the last trading day before Thanksgiving, fueled by optimism over a potential interest-rate cut next month.
Dow Jones Industrial Average futures edged up 0.1%, while S&P 500 futures rose around 0.3%, News.Az reports, citing foreign media.
Nasdaq 100 contracts gained 0.4%, following Tuesday’s strong rally in the major indexes, which saw the Dow surge 660 points.
Stocks are gearing up for their fourth straight advance after tech names helped buoy the broader market, though an AI trade shift could be underway. Alphabet (GOOG) ended Tuesday at fresh record highs amid signs it is threatening Nvidia's (NVDA) dominance in AI chips. In premarket, the Google parent is within touching distance of a $4 trillion market cap, up over 1%. Meanwhile, shares in Nvidia slipped after closing over 2.5% lower.
At the same time, investors continue to closely watch for influences on the Federal Reserve’s next policy move, given the US shutdown-driven data drought. The central bank's Beige Book out Wednesday will shed light on how the US economy is performing region-by-region, and will be scoured for clues to consumer spending and the labor market as the Fed gets ready for its meeting in two weeks' time.
Markets are pricing in an over 80% probability of a December quarter-point rate cut after delayed September readings on retail sales and wholesale inflation fell short. An update on weekly initial jobless claims is on Wednesday's docket, expected to show a slight rise.
Meanwhile, palace intrigue at the central bank continues to pick up steam, with five finalists on President Trump's shortlist to take Chair Jerome Powell's place next year. Kevin Hassett, the White House's top economic adviser, has emerged as the frontrunner as the search enters its final weeks.
In a holiday-shortened week, earnings hit their peak on Tuesday with big-box retailers posting better-than-expected results. Before the bell, Deere & Company (DE) shares slid after its full-year outlook fell short. The farm machinery maker was the biggest name left left on this week's earnings calendar, with markets shuttered Thursday and finishing at 1 p.m. ET on Friday.
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