U.S. stock index futures showed little movement on Thursday, retreating slightly after all three major indexes—the S&P 500, Nasdaq, and Dow—closed at record highs in the previous session. Investors are now turning their attention to upcoming employment data and the Federal Reserve’s potential rate decisions, which are driving market speculation.
Record Highs Driven by Tech
On Wednesday, a rally in technology stocks propelled markets to new heights. Salesforce (NYSE: CRM) and Marvell Technology (NASDAQ: MRVL) posted robust earnings, boosting investor confidence. These gains helped the S&P 500, Nasdaq, and Dow notch all-time closing highs.
Federal Reserve Chair Jerome Powell contributed to market optimism, noting that the economy is performing better than anticipated. However, Powell hinted at a more cautious approach to future interest rate cuts, stating that the central bank might slow its pace of easing.
Meanwhile, San Francisco Federal Reserve Bank President Mary Daly echoed Powell’s cautious sentiment, remarking there was “no sense of urgency” to cut rates. Traders are keeping a close eye on comments from Richmond Fed President Thomas Barkin, expected later in the day.
Fed Rate Speculation
Despite the cautious tone from Federal Reserve officials, traders still anticipate a 74% probability of a 25-basis-point rate cut later this month, according to CME’s FedWatch Tool. The upcoming jobs report, set to release on Friday, will likely be a pivotal factor in confirming or reshaping these expectations.
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Economists at BNP Paribas (OTC: BNPQY) noted that special factors—such as weather, the resolution of the Boeing strike, and election-related effects—could complicate the interpretation of the November jobs data. In a note, the bank projected “strong job growth but a slight rise in unemployment,” a mix they believe supports a December rate cut.
Premarket Movers
As the earnings season winds down, companies like Dollar General (NYSE: DG) and Kroger (NYSE: KR) are drawing attention with their quarterly reports.
Cryptocurrency and blockchain stocks also made waves in premarket trading. Bitcoin, the world’s largest cryptocurrency, crossed the $100,000 mark for the first time, sparking a surge in related equities:
- Coinbase Global (NASDAQ: COIN): Up 3.4%
- MARA Holdings: Added 6.3%
- MicroStrategy: Advanced 6.1%
Disappointments in Tech
Not all stocks rode the wave of optimism. SentinelOne (NYSE: S) plummeted 14.7% after missing Wall Street estimates for its third-quarter profit. Synopsys (NASDAQ: SNPS) also dropped 7.4% as the chip design software company forecasted weaker fiscal 2025 revenue, partly due to a slump in sales from China.
Futures Snapshot
At 5:08 a.m. ET, U.S. stock futures displayed mixed signals:
- Dow E-minis: Gained 9 points (+0.02%)
- S&P 500 E-minis: Fell 1.25 points (-0.02%)
- Nasdaq 100 E-minis: Declined 22 points (-0.1%)
What’s Next?
The market’s focus now shifts to weekly jobless claims data, which will provide additional clues about the labor market ahead of Friday’s monthly jobs report. With the Federal Reserve’s December meeting looming, this data could shape expectations for future monetary policy decisions.
Stay tuned for updates on key economic indicators and how they’ll influence the next chapter of Wall Street’s story.