The major U.S. index futures indicate a modestly higher opening for the markets on Friday, following the resumption of futures trading after a “cooling issue” at a data center interrupted trading on the Chicago Mercantile Exchange earlier in the morning. The trading disruption coupled with an early close on market, is likely to result in below-average trading activity as the weekend approaches. The absence of significant U.S. economic data could lead to some traders remaining inactive as they await next week’s reports concerning manufacturing and service sector performance, as well as private sector employment figures. Nonetheless, equities may persist in capitalizing on the recent upward momentum, which has underpinned a four-day winning streak for the markets leading up to yesterday’s holiday. The markets have recently experienced a boost in sentiment regarding the trajectory of interest rates, spurred by conciliatory remarks from certain officials within the Federal Reserve. Sources reveals that the probability of the Federal Reserve reducing rates by an additional quarter point in the upcoming month has surged to 86.9 percent.
Equities experienced a predominantly positive trajectory during Wednesday’s trading session, continuing the upward momentum observed in recent days. The major averages exhibited upward movement during the morning session and sustained a robust positive trajectory throughout the afternoon. The major averages recorded gains for the fourth consecutive session, persistently advancing towards their previous record highs. The Dow increased by 314.67 points, representing a rise of 0.7 percent, reaching 47,427.12. The Nasdaq saw a gain of 189.10 points, or 0.8 percent, closing at 23,214.69. Meanwhile, the S&P 500 advanced by 46.73 points, also up 0.7 percent, finishing at 6,812.61. The recent upward momentum has provided substantial support to stocks, enabling the major averages to recover robustly from the notable decline experienced earlier in the month. Market participants appear to have dismissed the valuation apprehensions that had recently pressured the markets, resulting in the Nasdaq and the S&P 500 declining to their lowest points in more than two months. The markets further capitalized on the resurgence of optimism regarding the trajectory of interest rates. Sources indicates that the probabilities of a rate cut remain largely unchanged from Tuesday, even in light of recently released positive U.S. economic data.
The Commerce Department published a long-awaited report this morning indicating that new orders for U.S. manufactured durable goods rose more than anticipated in September. According to the report, durable goods orders increased by 0.5 percent in September, following a notable rise of an upwardly adjusted 3.0 percent in August. Durable goods orders were anticipated by economists to increase by 0.3 percent, in contrast to the 2.9 percent jump reported for the preceding month. A separate report released by the Labor Department indicated an unanticipated decline in first-time claims for U.S. unemployment benefits for the week ending November 22nd. The Labor Department reported that initial jobless claims decreased to 216,000, reflecting a decline of 6,000 from the revised figure of 222,000 from the prior week. Analysts had anticipated that jobless claims would rise slightly to 225,000 from the initially reported 220,000 for the prior week. The recent decline has resulted in jobless claims reaching their lowest point since the equivalent figure recorded in the week ending April 12th.
Gold stocks experienced a significant uptick in response to a rise in the price of the precious metal, propelling the NYSE Arca Gold Bugs Index up by 4.9 percent to its highest closing level in more than a month. Significant strength was also evident among airline stocks, as the NYSE Arca Airline Index surged by 3.2 percent to reach a one-month closing high. On the day, there was notable strength in computer hardware and semiconductor stocks, which played a role in the ongoing ascent of the tech-heavy Nasdaq. Brokerage, steel, and natural gas stocks exhibited significant upward movements, aligning with the positive trends observed across the majority of other major sectors.