U.S. Stock Futures Climb as Rate-Hike Cycle Optimism Grows

Overview

U.S. stock futures displayed a positive outlook on Thursday, as hopes emerged that the U.S. rate-hike cycle might have reached its peak. The market was fueled by various factors, including an optimistic tone from Federal Reserve Chair Jerome Powell and lower-than-expected Treasury refunding. However, the Institute for Supply Management's manufacturing index and the ADP private-sector employment gauge both disappointed.

Market Performance

• Dow Jones Industrial Average futures (YM00) rose by 59 points or 0.2% to reach 33,410.
• S&P 500 futures (ES00) gained 19 points or 0.4% to reach 4,275.
• Nasdaq 100 futures (NQ00) increased by 93 points or 0.6% to reach 14,838.

Previous Day's Market Summary

On Wednesday, the Dow Jones Industrial Average (DJIA) climbed by 222 points or 0.67% to reach 33,275. The S&P 500 (SPX) increased by 44 points or 1.05% to reach 4,238. Meanwhile, the Nasdaq Composite (COMP) gained 210 points or 1.64% to reach 13,061.

Key Factors Influencing the Market

Several significant events impacted the market on Wednesday. Federal Reserve Chair Jerome Powell's comments were seen as leaning toward a dovish stance, indicating potential room for optimism. Additionally, Treasury refunding fell slightly below estimates at $112 billion, resulting in less issuance of 10- and 30-year notes compared to August.

Furthermore, the Institute for Supply Management's manufacturing index revealed weaker-than-expected results, adding to concerns about the slowing U.S. economy. The ADP private-sector employment gauge also surprised with negative figures.

Michael Hewson, Chief Market Analyst at CMC Markets UK, commented, "Powell's attempt to appear hawkish was met with skepticism from the market, especially considering yesterday's economic data suggesting a slowdown in the U.S. economy."

Upcoming Economic Events

In anticipation of Friday's crucial nonfarm payrolls report, the economic calendar includes the release of weekly jobless claims and third-quarter productivity data.

Apple Earnings Announcement

After the closing bell, Apple (AAPL) is scheduled to announce its latest earnings report.