Wednesday morning saw a spike in U.S. stock futures as traders anticipated the Federal Reserve’s December interest rate decision.
The Dow Jones Industrial Average futures gained 116 points, or 0.3%. The Dow fell 267.58 points, or 0.61%, on Tuesday, entering its longest losing run since 1978. Futures for the S&P 500 increased by 0.3%, and those for the Nasdaq 100 increased by 0.2%.
The shift away from old economy firms and towards technology stocks—a sector that the century-old measure underweights in comparison to broader market metrics—was the primary reason of the Dow’s biggest slump in forty-six years. The Dow is still less than 4% from its peak despite the run.
With the S&P 500 in the green for December and trading around 1% below its peak, other market indicators are doing well this month. Because investors flocked to IT stocks and avoided the Dow, the Nasdaq is up 4.6% this month.
Source (CNBC)
