Home Business News US stock market futures rise amid Fed testimony and upcoming inflation data

US stock market futures rise amid Fed testimony and upcoming inflation data

11th Jul 24 10:09 am

The US stock market futures saw another positive session on Wednesday, building on the recent record highs for the Nasdaq and S&P 500.

This comes despite Powell refraining from committing to a timeline for rate cuts in his testimony to Congress, Federal Reserve Chair Jerome Powell noted that additional positive data would reinforce confidence in reaching the Fed’s 2% inflation target.

He cautioned against cutting rates too soon, which could hinder inflation control, or too late which could damage the economy.

Investors are anticipating two rate reductions this year, with strong odds of a start in cuts in September.

Market participants are also looking forward to speeches from Chicago Fed President Austan Goolsbee, Fed Governor Michelle Bowman, and Fed Governor Lisa Cook. Thursday’s Consumer Price Index (CPI) and Friday’s Producer Price Index (PPI) reports are crucial for investors. Softer CPI data today could solidify expectations for a rate cut in September.

The technology sector continues to lead, with Nvidia climbing in premarket trading after hitting a near three-week high in the previous session. Other chip stocks, including Arm and Micron, also gained. US-listed shares of Taiwan Semiconductor Manufacturing, the world’s largest contract chipmaker, rose after its second-quarter revenue exceeded estimates.

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