Sep 24 2024: U.S. stock index futures inched higher Tuesday, holding near record highs, as investors awaited further guidance from the Federal Reserve on interest rate policy.
At 05:25 ET (09:25 GMT), Dow Jones Futures were up 65 points, or 0.2%, S&P 500 Futures increased by 10 points, or 0.2%, and Nasdaq 100 Futures advanced by 65 points, or 0.3%.
On Monday, Wall Street’s major indices saw slight gains, with the S&P 500 and Dow Jones Industrial Average closing at all-time highs.
Fed Officials’ Speeches and PCE Data in Focus
This week’s spotlight is on speeches from several Federal Reserve officials, including Chair Jerome Powell, as markets seek more clarity on the Fed’s trajectory for interest rate cuts.
Minneapolis Fed President Neel Kashkari suggested the pace of rate reductions may slow following a strong start to the easing cycle. Meanwhile, Atlanta Fed President Raphael Bostic noted that the economy was approaching normalization faster than anticipated but ruled out aggressive rate cuts.
Fed Governor Michelle Bowman’s remarks, scheduled for later Tuesday at the Kentucky Bankers Association Annual Convention, will be closely watched, especially since she was the only dissenter to last week’s rate cut decision.
The Fed recently cut rates in line with the upper range of market expectations, marking the start of an easing cycle. Analysts predict further cuts of up to 125 basis points by year’s end.
On Friday, the Fed’s preferred inflation gauge, the PCE price index, will be released, influencing the central bank’s next steps. Meanwhile, the Consumer Board’s September confidence index is set to be published later Tuesday.
Boeing Offers Improved Labor Deal
In corporate news, Boeing (NYSE) has proposed a more attractive labor deal to over 30,000 striking workers in the Pacific Northwest, though the union has declined to bring the offer to a vote.
Boeing’s updated offer includes a 30% wage increase over four years, enhanced retirement benefits, and a higher ratification bonus if accepted by Friday. Boeing described the offer as its “best and final” proposal.
Elsewhere, Deere & Company (NYSE) saw its stock decline in premarket trading after Republican presidential candidate Donald Trump threatened a “200% tariff” on the company if it relocates some production to Mexico.
AutoZone (NYSE) and KB Home (NYSE) are also set to release quarterly earnings on Tuesday.
Crude Oil Gains on Chinese Stimulus and Middle East Tensions
Oil prices rose on Tuesday, supported by economic stimulus measures from China, the world’s largest crude importer, and escalating tensions in the Middle East.
By 05:25 ET, Brent crude was up 2.3% at $74.91 per barrel, while U.S. crude (WTI) surged 2.5% to $72.14 a barrel.
China’s broad stimulus package has sparked hopes of increased demand for crude, while Israeli airstrikes on Hezbollah sites in Lebanon have raised fears of potential supply disruptions from the oil-rich region, further tightening global markets.
(Contribution by Ambar Warrick.)
