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U.S. stock index futures climbed on Friday, driven by investor anticipation of speeches from Federal Reserve officials and awaited economic data, amidst a backdrop of increased bets on U.S. interest rate cuts.
Market Overview
After recent economic data bolstered expectations of U.S. interest rate cuts, U.S. stock index futures pointed towards gains, with Wall Street indexes inching closer to record highs. The S&P 500 and Nasdaq Composite were poised for their third consecutive week of gains, while the Dow looked set for a fourth week of positive performance.
Interest Rate Expectations
Traders are currently pricing in a 46 basis point cut in interest rates by the end of 2024, with the first anticipated cut of 25 bps in September. The prospect of U.S. monetary policy easing, combined with positive earnings reports, has buoyed investor sentiment.
Key Data and Speeches
Investors awaited the University of Michigan’s preliminary survey of consumer sentiment for May, scheduled for release at 10 a.m. ET. Additionally, speeches from several Fed policymakers, including Governor Michelle Bowman and Minneapolis President Neel Kashkari, were anticipated throughout the day. Despite most Fed policymakers signaling a rate cut as the next policy move, uncertainty persists regarding the timing of the easing.
Market Movement
By 5:57 a.m. ET, S&P 500 e-minis were up 20.25 points, Nasdaq 100 e-minis climbed 86.25 points, and Dow e-minis added 116 points. Nvidia saw a 1.4% increase in premarket trading following robust April sales reported by Taiwan Semiconductor Manufacturing Co, a key supplier to Nvidia.
Company News
Akamai Technologies experienced a 10.6% decline after projecting second-quarter revenue and profit below Wall Street estimates due to anticipated weak demand for its content delivery services. Conversely, SoundHound AI surged 16.4% after reporting first-quarter revenue that surpassed market estimates, fueled by its innovative conversational technology.
Overall, market sentiment remained positive, driven by optimism surrounding potential rate cuts and upbeat earnings reports.
