Market Snapshot: S&P 500 futures point higher for first time since Fed’s higher-for-longer message

by | Sep 22, 2023 | Stock Market

U.S. stock futures were mostly higher Friday for the first time since the Federal Reserve hiked its interest-rate forecast for next year.What’s happening
Dow Jones Industrial Average futures
fell 7 points, or 0%, to 34330.

S&P 500 futures
gained 5 points, or 0.1%, to 4377.

Nasdaq 100 futures
increased 46 points, or 0.3%, to 14908.

On Thursday, the Dow Jones Industrial Average
fell 370 points, or 1.08%, to 34070, the S&P 500
declined 72 points, or 1.64%, to 4330, and the Nasdaq Composite
dropped 245 points, or 1.82%, to 13224.

The S&P 500 has dropped 2.8% over the last three days.What’s driving markets Stocks finally seemed to be finding a floor on Friday, after two days of selling sparked by the Federal Reserve decision, in which it held rates but moved the median dot for expected 2024 rates up by a half point. Thursday also saw data showing an unexpected decline in jobless claims, helping send the 2-year Treasury yield
to its highest since 2006 and the 10-year
to its highest yield since 2007. “The fallout from Wednesday’s ‘higher for longer’ message from the U.S. Federal Reserve continues with Wall Street suffering its worst slump in six months with 10-year benchmark Treasury yields touching 4.5% for the first time since 2007 and the prospect of rate cuts next has been reduced to just 75 bps,” said Saxo Bank strategists. They said both the S&P 500 and the Nasdaq 100 closed at technical support levels, paving the way for a minor rebound even though there’s a bearish trend. A busy week for central bank decisions was capped by the Bank of Japan keeping its ultra-loose monetary policy stance unchanged, which triggered some gains for the dollar vs. the yen
The U.S. economics calendar includes the preliminary readings of the manufacturing and services purchasing managers index, as well as a speech from Fed Gov. Lisa Cook at an artificial-intelligence conference.

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