U.S. Stock Futures Rise as Dow Jones Industrial Average Nears All-Time Highs
Traders on the floor of the New York Stock Exchange are gearing up for another positive day as U.S. stock futures climbed on Friday. The Dow Jones Industrial Average is poised to add to this week’s gains, which have propelled the 30-stock average to all-time highs.
Dow futures rose by 92 points, or 0.25%, S&P 500 futures inched up 0.23%, and Nasdaq 100 futures rose 0.27%. The major averages are headed for their seventh straight positive week, with the Dow up by 2.8%, the S&P 500 up by 2.5%, and the Nasdaq Composite up by 2.5% this week.
It would also mark the S&P 500’s seventh straight weekly gain, its longest winning streak since 2017. Meanwhile, the Dow is on track for a nine-week winning streak, its longest run since 2019.
Thursday saw Wall Street hit yet another fresh record high for the Dow, with the 30-stock benchmark rising more than 150 points. The S&P 500 and Nasdaq also experienced gains.
The November retail sales data came in stronger than expected on Thursday, following this week’s cooler inflation readings, adding to hopes that the Federal Reserve could navigate a soft landing.
According to Anastasia Amoroso, chief investment strategist at iCapital, the Federal Reserve is focusing on inflation, which has been coming down quickly. This has led to speculation that interest rates may be cut to address the gap between the expected inflation rate and the projected interest rate.
Moreover, Treasury yields dropped this week, with the 10-year Treasury yield falling below 4% after topping 5% in October.
The positive momentum in the stock market comes after the Federal Reserve indicated on Wednesday that its efforts to control inflation are working, and forecasted three interest rate cuts in 2024, boosting investor sentiment.
As investors continue to monitor the market and economic indicators, the question on everyone’s mind is whether the Dow and S&P 500 will soon achieve their own all-time highs.
Overall, the stock market is showing signs of resilience and strength, with Wall Street remaining optimistic as the year comes to a close.