In hopes that the Federal Reserve will stop hiking benchmark interest rates, investors’ holdings in stock futures increased on Wednesday. On top of their already substantial monthly gains, traders also attempted to expand.
One tick, or 0.3%, was added to futures linked to the Dow Jones Industrial Average. Futures for the S&P 500 increased by 0.3%, while those for the Nasdaq 100 increased by 0.4%.
Following news that Miriam Adelson, the largest shareholder of the casino operator, will be selling $2 billion worth of shares, Las Vegas Sands’ stock fell more than 5%. When NetApp beat analysts’ estimates in the most recent quarter and provided positive earnings guidance, the company saw a 12% increase.
Tuesday saw just slight increases in the major averages. The Nasdaq Composite increased by almost 0.3%, while the S&P 500 gained 0.1%. There was a 0.2% increase on the Dow.
On Tuesday, Governor Christopher Waller of the Federal Reserve stated that the present monetary policy seemed to be sufficiently restrictive to bring inflation back down to the 2% target set by the central bank. The remarks raised investor confidence and helped the market rise in value.
Adam Crisafulli, president and founder of Vital Knowledge, stated on CNBC’s “Closing Bell: Overtime” on Tuesday that “markets are already way ahead of where Waller shifted the Fed to.”
He continued, “I think there’s a lot of meaningful economic data we’ll get between now and the next meeting. It’s simply a question of whether the Fed will start pushing back forcefully again regarding rate cuts that are predicted for next year.” “I believe that investors are simply awaiting clarification on that front.”
In fact, the CME FedWatch Tool indicates that the central bank may decide to lower rates as early as next spring based on fed funds futures prices.
The monthly gains on the major averages are expected to be substantial. November has seen gains of 8.6% for the S&P 500 and 7.2% for the Dow. It was up 11.1% on the Nasdaq.
Source (CNBC)
