Futures US Stock Rise Amid Focus on Inflation and Jobs Data

Futures US Stock Rise: U.S. stock index futures rose cautiously to start the week, highlighting inflation and employment data. This movement highlighted the release of unemployment and inflation data. The Fed should learn more about interest rate management from these crucial measurements.

Friday’s stock market session started poorly but ended well. Despite market instability earlier in the day, this happened. At the Jackson Hole summit, Federal Reserve Chairman Jerome Powell said these things, prompting this response. Powell suggested that the Federal Reserve may need to raise interest rates to control inflation. Because of what was said, this answer came.

Powell noted that prices have been lowered and that the U.S. economy is surprisingly strong. He said something surprising about the US economy’s strength. This is making the market more aware of important economic indicators released this week. It happened because of what I told you.

The Fed’s preferred inflation measure is the personal consumption expenditures price index, released Thursday. After that, non-farm payroll data will be released on Friday.

Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, says that while they believe the Fed is done tightening, data may change people’s minds over the next few weeks. Because they believe the Fed has finished tightening. Haefele mentioned this even though their main assumption is that the Federal Reserve has finished tightening the money supply.

September could be volatile, so market participants are preparing. September has historically been a bad month for stocks. The Fed meets in September. Additionally, the government may shut down due to a lack of funds.

Also Read: Nvidia Earnings Release Sparks Optimism and Market Comeback in US Stocks

After Powell’s comments at Jackson Hole, CME Group’s FedWatch showed that traders still expect the Fed to pause its plan to tighten monetary policy at the September meeting. Powell spoke at Jackson Hole Economic Policy Symposium. The comments increased the likelihood of a November federal funds rate increase from 38% to 51%. Even though 38% were odds, this happened.

PDD Holdings, JD.com, Baidu, and Alibaba shares traded in the U.S. rose 1.2% to 1.5% due to pre-market events. The rise in these companies’ share prices explains this. Starting Monday, China will cut stock trading stamp duty by 50%. This rise is due to that choice.

Dow e-minis gained 82 points, or 0.24 percent, at 5:40 a.m. ET. Nasdaq 100 e-minis rose 36.25 points, or 0.24 percent, while S&P 500 rose 7.50 points, or 0.17 percent.

In other news, 3M’s share price rose 5.1% before the market opened after it was reported that the company was close to settling over 300,000 lawsuits with more than $5.5 billion. Without this agreement, activity would not have increased. The conglomerate should be held accountable for giving the U.S. military substandard combat earplugs, according to these legal claims.

On the New York Stock Exchange, Xpeng, a Chinese electric car manufacturer that operates in the US, rose 4.7%. This occurred after Xpeng announced it would buy Didi’s electric car development business for $744 million. The new thing happened after Xpeng announced.

Our Reader’s Queries

What are the US futures doing right now?

The current prices and changes for index futures are as follows: DOW FUT at 37,745 with a decrease of 18, S&P FUT at 4,792.25 with a decrease of 0.5, NAS FUT at 16,838.75 with an increase of 8.5, and S&P MID MINI at 2,749.4 with a decrease of 0.2.

Will US stocks go up in 2023?

In 2023, stocks gained momentum and the S&P 500 surged by 11% in the fourth quarter alone. This could potentially lead to a strong start in the new year. According to LPL Research’s data dating back to 1950, when there is a gain of 20% or more, the S&P 500 has historically risen by an average of 10% in the following years.

What does it mean when stock futures rise?

Index futures can provide insight into the stock market’s direction for the following day. If futures prices rise or fall significantly outside of regular trading hours, it may indicate a higher or lower opening for the stock market. When futures prices deviate too much from fair value, arbitrageurs use buy and sell programs in the stock market to capitalize on the difference.

Why are US stocks surging?

The stock market experienced a significant surge following the Federal Reserve’s recent policy update. The update included projections for an additional interest rate cut in 2024, which exceeded initial expectations. This news caused stocks to soar, indicating a positive outlook for investors.

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