U.S. futures are on the rise following the Federal Reserve’s decision to maintain the benchmark interest rate, hinting at potential rate cuts in the near future. This news has sparked optimism among investors, with futures on the Nasdaq 100, S&P 500, and Dow Jones Industrial Average all showing gains in early morning trading.
The Fed’s decision to keep rates unchanged comes alongside an upward revision of real GDP growth expectations for 2024, from 1.4% to 2.1%. This positive outlook has already had an impact on the market, with both the S&P 500 and Dow Jones indices reaching record highs in yesterday’s trading session.
In other stock-related news, major companies like Microsoft, Meta Platforms, and Elon Musk’s X have joined Epic Games in a battle against Apple’s app store policies. Micron stock saw a significant gain in after-hours trading on the back of strong Q2 results, while discount retailer Five Below faced a decline due to lower-than-expected Q4 results.
Investors are now eagerly awaiting the release of the Manufacturing Purchasing Manager’s Index for March, as well as earnings reports from key companies like Accenture, Darden Restaurants, and Nike. The U.S. 10-year treasury yield has dipped slightly, while WTI crude oil futures are trending higher.
Over in Europe, indices opened higher as investors anticipate interest rate decisions from the Bank of England, Norges Bank, and the Swiss National Bank.
Meanwhile, Asia-Pacific markets ended the day on a mixed note, with strong gains in Hong Kong and Japan driven by optimism over potential rate cuts. The Hang Seng index closed nearly 2% higher, while the Nikkei and Topix indices in Japan also saw gains. However, China’s Shanghai Composite and Shenzhen Component indices ended the day in the red.
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