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Following the Strongest Day Since April for the S&P 500 and Nasdaq, Stock Futures Edge Higher

On Wednesday, futures for US stocks increased somewhat.

S&P 500 futures experienced a 0.21% increase. Futures on the Nasdaq 100 increased by 0.26%, and futures on the Dow Jones Industrial Average increased by 55 points, or 0.16%.

The House of Representatives approved a bill late on Tuesday to prevent a government shutdown. The bill will be put to a vote in the Senate. President Joe Biden will get the legislation if it is approved by Congress. The federal government will close on Friday at 11:59 p.m. ET if no budget bill is passed.

The Nasdaq Composite surged almost 2.4% higher during the regular session, while the S&P 500 increased 1.9%. It was the greatest day for both indexes since April. The 30-stock Dow gained 1.4%, or almost 490 points.

These advances followed the consumer price index for October, a crucial indicator of inflation, coming in below the 0.1% increase the Dow Jones polled of analysts had predicted. On a monthly basis, however, the CPI was flat. In anticipation that the Federal Reserve would finally halt its rate-hiking campaign, investors reacted with joy to the news, sending equities skyrocketing.

The market was essentially satisfied with the CPI report’s confirmation of the disinflationary trend, the slowing of the economy, and its ultimate role as the catalyst for the Fed’s decision to raise interest rates once more in December, according to Baird’s investment strategy analyst Ross Mayfield.

Mayfield continued, stating that given the current strength of the housing market, he does not think the US Federal Reserve would lower interest rates anytime soon.

Source (CNBC)

SourceCNBC
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