Dow futures slipped back from their historic highs this morning, down roughly 0.2% after the Dow closed above 46,000 for the first time ever on Thursday.
Markets are in suspense ahead of next week’s pivotal Federal Reserve meeting, with traders betting that persistent but manageable inflation and a weakening jobs market have set the stage for a rate cut.
Economic data continues to show higher prices and the highest jobless claims in nearly four years, a mix fueling hopes for a more dovish Fed stance.
Investors are now watching for fresh catalysts that could jolt sentiment after recent record-breaking rallies.
5 things to know before Wall Street opens
1. Stocks making the biggest noise in pre-market trading today include Vestand, soaring over 120%, and GlucoTrack, surging nearly 95% on heightened volume and buzz-worthy news.
On the flip side, Next Technology Holding is under severe pressure, plunging more than 50%, while Rent the Runway is down by almost a quarter, reflecting tough news flow in the retail and tech sectors.
Biotech names like HCW Biologics and Huize Holdings are also drawing pre-market attention, as traders react to company-specific catalysts.
2. From a technical standpoint, Wall Street’s major indices are entering the session in striking distance of all-time highs.
The S&P 500 and Nasdaq 100 both closed Thursday near record levels, signaling that momentum traders may look for breakouts if bullish sentiment holds.
However, short-term oscillators hint at overbought territory, raising caution of potential reversals. Volatility remains subdued, but traders are wary: should key indices fail to extend their rallies, profit-taking could accelerate as investors weigh hefty gains against macro uncertainty.
3. All eyes are trained on today’s slate of economic data, but most signals suggest a lower-volatility session.
The day’s headline report is the University of Michigan’s Consumer Sentiment Survey, which is expected to reflect cautious optimism as US inflation remains persistent but manageable.
While jobless claims released yesterday climbed to their highest since 2021, no major releases are projected to shake market confidence before the Fed’s highly anticipated decision next week.
Still, any abrupt moves in consumer attitudes or inflation expectations could ripple through equity and bond markets by mid-session, keeping traders on alert for surprises in otherwise steady waters.
4. Global equity markets are printing a mixed start that could sway US trader sentiment.
European indices, including the FTSE 100 and CAC 40, are pushing higher in the early trading hours, buoyed by strength in core industrials and financials.
In contrast, benchmarks like Germany’s DAX and the EuroStoxx 50 are trading down, dragged by profit-taking and disappointing earnings.
Over in Asia, markets finished the day with modest gains as investors shrugged off weaker Chinese data, focusing instead on stimulus hopes.
5. With last night’s close above 46,000 for the Dow still fresh, the big-picture narrative remains dominated by Federal Reserve expectations.
Following a string of softer-than-expected jobs reports and persistently sticky, but not runaway, inflation, traders are increasingly wagering on an earlier Fed rate cut.
This optimism has fueled much of the week’s stock market euphoria, pushing fear gauges lower and prompting renewed rotation into risk assets.
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