Jan 22, 2024: U.S. stock futures showed slight gains on Monday, extending the recent surge led by the tech sector, as the week brings a flurry of earnings reports and important economic data.
As of 06:45 ET (11:45 GMT), Dow Futures were up by 55 points or 0.1%, S&P 500 Futures marked a 0.3% increase with a gain of 16 points, and Nasdaq 100 Futures surged 105 points or 0.6%.
Following a dip earlier in the week, the major U.S. indices closed higher on Friday, driven by an AI-powered rally that propelled the S&P 500 to its first record high close in two years, symbolizing the transition from a bear to a bull market.
All three primary indices – Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 – are now positive for the year 2024.
Upcoming growth and inflation data The shift to a bull market has been largely influenced by expectations of the Federal Reserve implementing swift interest rate cuts as inflation moderates. However, uncertainties persist regarding the timing and extent of these rate adjustments.
The probability of a Federal Reserve cut in March has shifted to 50-50 after recent positive data on retail sales and consumer sentiment, compared to just under 80% a week ago.
Investors are eagerly anticipating Thursday’s release of crucial U.S. inflation data, providing fresh insights into the prospective trajectory of interest rates. December’s personal consumption expenditures data follows a 2.6% year-over-year increase in the price index until November, with monthly prices experiencing their first decline in over three and a half years.
The government is also set to unveil fourth-quarter GDP data on Wednesday, projected to show a 2.0% increase after a 4.9% rise in the preceding quarter.
