US Futures : Dow Jones and Nasdaq futures are trading higher – 30 Oct 2023
US Futures – Dow Jones and Nasdaq Futures
The US Futures indices, Dow Jones, S&P 500, and Nasdaq Futures are trading higher ahead of the Federal Reserve’s interest rate decision and big corporate earnings.
The Dow Jones Industrial Average future is trading higher by 120 points or 0.37 percent at 32624 level, while the S&P 500 future is up by 21 points or 0.51 percent at 4159 levels. The Nasdaq composite future is also trading higher by 103 points or 0.72 percent at 14368 levels at 1.20 p.m. IST or 3.50 a.m. ET
US Markets So Far
On Friday, the US stock markets ended mixed. The Nasdaq index closed higher as Amazon reported strong quarterly earnings. Meanwhile, Dow Jones ended lower, as the energy stocks Chevron and Exxon Mobil declined and dragged the sector lower after disappointing quarterly results.
Federal Reserve’s preferred inflation gauge Personal Consumption Expenditures (PCE) reading showed Core PCE rose slightly higher by 0.3% in September from August but in line with the expectation. However, the yearly core PCE index came to a slightly lower 3.7% in September from 3.8% in August.
What to Expect from the Markets
The Federal Reserve’s monetary policy outcome is due on Wednesday and it is widely expected to hold its interest rates at the same level. The interest rate at a higher level for a longer period is the main fear of investors and this fueled the stock market correction.
However, traders are still fretting that the Fed is likely to hike another interest rate in December 2023. Traders will be closely looking for the US Fed meeting outcome and Powell’s commentary to get a clue on the interest rate path.
The yield of the 10-year Treasury note which surpassed 5% last Monday ended at 4.841% on Friday, the yield is trading steady at 4.855% at 3.50 a.m. EDT on early Monday.
On the earning front, Apple will be reporting its quarterly earnings on Thursday after the closing bell. Meanwhile, HSBC Holdings McDonald’s Arista Networks Welltower Inc., Public Storage, ON Semiconductor Corp, Simon Property Group, Arch Capital Group, and Pinterest, will report their quarterly earnings on Monday.
On the economic front, Dallas Fed Manufacturing Index (Oct) data will be released today. The indication from the US futures indexes is positive so far, the US markets are likely to open in the green today.
Also read, Global Stock Market Trends: Recap of the Week (23-27 Oct 2023)
Stock Market Prediction Next Week (30 Oct – 3 Nov 2023)
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