How are stock-index futures trading:
S&P 500 futures are adding 0.1%.
Dow Jones Industrial Average futures are up 0.02%.
Nasdaq 100 futures are gaining 0.1%.
On Monday, the Dow Jones Industrial Average rose 237 points, or 0.58%, to 40,897, the S&P 500 increased 54 points, or 0.97%, to 5,608, and the Nasdaq Composite gained 245 points, or 1.39%, to 17,877.
Futures indicate stocks may struggle to extend an eight-day winning streak that has seen the S&P 500 rally 8.9%, the biggest percentage gain over such a period in more than two years.
Given such a surge, investors may be excused a moment for consolidation, particularly as markets are in somewhat of a catalyst vacuum as earnings season winds down and the week has started with not much in the way of fresh economic data.
Consequently, all eyes remain focused on Friday’s speech by Federal Reserve Chair Jerome Powell, in which he is expected to imply that a gently cooling economy and inflation back below 3% allows for a steady reduction of interest rates, starting next month.
“Investors are pouring back into equities with a renewed sense of ‘full recovery’ confidence, betting big on a ‘Goldilocks’ scenario for the U.S. economy—just the right mix of growth and stability,” says Stephen Innes, managing partner at SPI Asset Management.
“With the central bank on the cusp of what’s almost certainly the beginning of a rate cut cycle—potentially slashing 200 basis points or more—investors are laser-focused on Chair Powell’s upcoming appearance at Jackson Hole…eagerly waiting to see if he’ll give a wink of confirmation to the current market pricing,” Innes adds.
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