Wall St futures rise as investors look at more data and geopolitics
U.S. Stock Index Futures climbed a little higher on Wednesday, as investors waited for more economic data in order to determine the direction of monetary policy. They also monitored geopolitical tensions that were escalating in Venezuela. This pushed oil prices up.
Later in the day, a number of "influential" Federal Reserve officials including Governor Christopher Waller and New York's President John Williams are expected to provide more clarity about monetary policy.
The U.S. equity market had a volatile session Tuesday. The benchmark S&P500 touched a three-week high after a crucial jobs report failed. Analysts pointed out that the data could have been distorted due to the recent government shutdown.
Traders are still expecting two 25-basis point rate cuts in 2019, according to LSEG data. The first is expected to happen in June, a month after a likely new Fed chair has been appointed.
The White House Economic Advisor Kevin Hassett was reportedly criticized by those who are close to U.S. president Donald Trump, as well as the investment community. This included Jamie Dimon of JPMorgan Chase and Ken Griffin of Citadel.
The markets are indicating a short pause on the Fed's cutting cycle, which is in line with the central bank's guidance last week, said Kyle Rodda. Senior financial market analyst for Capital.com.
Consumer inflation data released by the Commerce Department on Thursday will be next in importance.
At 5:16 am. At 5:16 a.m. ET, Dow E Minis were up 107, or 0.22 %, S&P E Minis were also up 23 or 0.34%, and Nasdaq E Minis were 95 or 0.38%.
Oil stocks such as Halliburton SLB, and Occidental Petroleum all rose 1% in premarket trading. This was in response to a 2% rise in crude oil prices, and Trump's order for a "blockade", of all sanctioned tankers that enter and leave Venezuela.
The S&P 500 energy sector dropped the most on Tuesday since early April, as a peace agreement between Russia and Ukraine was expected. Both Russia and Venezuela produce a lot of oil.
U.S. listed precious metal miners like First Majestic, Harmony Gold, and others added around 3% each. They followed higher gold and silver prices. Silver now exceeds $65 for the very first time.
Wall Street will log its third consecutive set of annual gains with two weeks remaining in the year. This is due to rate-cut expectations and artificial intelligence enthusiasm.
Concerns over valuations in the tech sector have led to a 'cautionary approach this quarter. This is reflected by the rotation of funds into smaller companies and other sectors of the market, such as healthcare and banks.
Amazon.com rose by 1.4% following a report that the company is in talks with ChatGPT maker OpenAI to invest $10 billion.
After a report that suggested Warner Bros Discovery would likely reject Paramount's offer of $108.4 billion, the saga surrounding the bid has taken a new turn. The shares of Paramount and Warner Bros. dropped by about 1%, while Netflix rose 1.7%.
General Mills (GM) and Jabil (Jabil) are expected to release earnings reports before the markets open. (Reporting and editing by Maju Sam in Bengaluru, Johann M Cherian)
(source: Reuters)
