U.S. stock futures opened higher on Monday, following a strong performance from the major indices last week. After recording their seventh consecutive week of gains, futures tied to the Dow Jones Industrial Average climbed 0.2%, equivalent to 63 points. The S&P 500 futures also saw a 0.3% increase, while Nasdaq 100 futures rose by 0.2%.
Last week, the S&P 500’s winning streak marked the index’s longest stretch of weekly gains since 2017. With an overall increase of 3.3% for the month, the broad market index has shown significant growth. Additionally, the Dow and Nasdaq have seen respective gains of 3.8% and 4.1%. Notably, the Dow reached a new intraday record on Friday, and the Nasdaq 100 achieved a new closing high.
Investor sentiment improved last week following the Federal Reserve’s announcement that three short-term interest rate cuts are anticipated in 2024 due to cooling inflation. This development has injected positivity into the market as slowing inflation, low growth expectations, and sustained growth momentum are viewed as a favorable combination.
Max Kettner, the chief multi-asset strategist at HSBC, noted the market’s outlook in a Friday report, stating, “Slowing inflation, low growth expectations, and intact growth momentum is a great combination from a market perspective. We’ve argued time and again that this is a backdrop that is as Goldilocks as it gets.”
Source (CNBC)
