Futures Rise as Focus Shifts to Fed, Economic Data
Dec 4, 2024 at 10:48 AM
November private payrolls data is set to be released at 8:15 a.m. ET, with the highly anticipated November monthly employment report expected on Friday. This economic data holds significant importance as it provides insights into the job market and overall economic health. Traders are closely monitoring these figures, as they have a direct impact on market sentiment and interest rate decisions. According to CME’s FedWatch Tool, traders currently anticipate a near 74% chance of a 25-basis-point rate cut by the Fed this month, which is an increase from the more than 66% chance seen a week earlier. This indicates the market's expectation of a more accommodative monetary policy.Fed's Stance on Inflation
U.S. Federal Reserve officials stated on Tuesday that they remain confident that inflation is on a downward trajectory towards their 2% target. While most officials signaled their support for further interest-rate cuts, none strongly advocated for or against a reduction at the Fed’s upcoming meeting in two weeks. This shows a cautious approach by the Fed, as they continue to assess the economic situation before making any significant policy changes.Upcoming Economic Surveys
Comments from Fed Chair Powell are expected later in the day, adding to the market's anticipation. Additionally, the 'Beige Book', a comprehensive U.S. economic activity survey from the central bank, is scheduled for release at 2:00 p.m. ET. This survey provides valuable information on the current economic conditions across different regions. November non-manufacturing activity surveys from S&P Global and the Institute for Supply Management are also due shortly after markets open. These surveys offer insights into the non-manufacturing sector, which plays a crucial role in the overall economy.Stock Market Performance
The S&P 500 and the Nasdaq achieved record closing highs on Tuesday, driven by the continued rise of tech-related stocks in a turbulent session. U.S. stocks had a strong November following President-elect Donald Trump's re-election and the Republican Party's sweep of both houses of Congress. The benchmark S&P 500 is up almost 27% so far this year, outperforming bourses in Europe, Japan, and mainland China. At 05:03 a.m. ET, Dow E-minis were up 188 points, or 0.42%, S&P 500 E-minis were up 13.75 points, or 0.23%, hitting all-time highs. Nasdaq 100 E-minis were up 114.25 points, or 0.54%. Most megacap and growth stocks showed broad gains in premarket trading. Tesla (NASDAQ:TSLA) and Nvidia (NASDAQ:NVDA) led the gains with a 0.9% rise each.Corporate Earnings and Stock Movements
Salesforce (NYSE:CRM) experienced a significant jump of 12.8% after the enterprise cloud company exceeded Wall Street estimates for third-quarter revenue and raised the lower end of its annual revenue forecast. Marvell (NASDAQ:MRVL) Technology advanced 12.4% as the chipmaker forecast fourth-quarter revenue above analyst estimates. Digital identity verification firm Okta (NASDAQ:OKTA) soared 17.2% after reporting third-quarter profit compared to a year-ago loss. These corporate earnings announcements have a direct impact on the stock prices of these companies and contribute to the overall market sentiment.
