US stock futures rise in holiday-thinned trade

U.S. stock index futures rose in thin trade on Thursday evening as Wall Street remained close to record highs on optimism over a strong U.S. economy and lower interest rates.

Reports that U.S. trade tariffs on China will not be as severe as feared also helped sentiment, as investors bet on a less dire trade war between the world's biggest economies.

Investors largely stuck to bets that the Federal Reserve will cut interest rates further in December, although the longer-term outlook remained uncertain amid sticky inflation and the prospect of expansionary policies under President-elect Donald Trump.

Markets also appeared to be little deterred by a worsening conflict between Russia and Ukraine, while Israel and Hezbollah traded accusations of violating a recently announced ceasefire. 

S&P 500 Futures rose 0.2% to 6,028.0 points, while Nasdaq 100 Futures rose 0.3% to 20,877.75 points by 19:04 ET (00:04 GMT). Dow Jones Futures rose 0.2% to 44,931.0 points.  Wall St remains close to record highs, set for stellar Nov

Wall Street indexes saw some pullback in recent sessions, especially as technology stocks were battered by a slew of weak earnings and increased regulatory scrutiny.

But buying into economically sensitive sectors kept U.S. stock benchmarks close to record highs, with investors also positioning for more expansionary policies under Trump. 

The S&P 500 , NASDAQ Composite and Dow Jones Industrial Average were trading up between 5% and 7% for November, having rallied to a series of record highs in the wake of a Trump election victory. The Dow was the best performer among its peers.

Wall Street is set for a shortened trading day on Friday.  Fed speak on tap as Dec meeting looms 

Focus in the coming week will be on comments from a slew of Fed officials, including Chair Jerome Powell on Wednesday, for more cues on interest rates.

Despite recent signs of sticky inflation and labor market strength, markets have largely maintained expectations for a 25 basis point cut in December. The cut will bring the Fed’s total rate cuts in 2024 to 100 bps.

But central bank officials have offered a more cautious outlook on rates in recent addresses, sparking some concerns that the Fed will slow its pace of rate cuts in 2025. Sticky inflation is also expected to elicit a higher terminal rate from the Fed during its current easing cycle.

The Fed is set to meet on December 17 and 18 in its final meeting for the year.

Source: Investing.com