Noor Trends News, Technical Analysis, Educational Tools and Recommendations
U.S. stock index futures were little changed early Thursday, as traders took a cautious stance ahead of Federal Reserve Chair Jerome Powell’s comments and additional speeches from other policymakers later in the day.
By 06:11 ET (10:11 GMT), Dow and S&P 500 futures were both flat, while Nasdaq 100 futures slipped by 16 points, or 0.1%, suggesting a muted start for Wall Street after another record-setting session.
AI Momentum Continues to Drive Market Sentiment
Equities extended gains on Wednesday, with both the S&P 500 and Nasdaq Composite closing at fresh all-time highs, propelled by ongoing enthusiasm surrounding artificial intelligence.
AI-linked mega-cap stocks continued to anchor the rally, with companies such as Nvidia, AMD, and Microsoft leading advances amid expectations of sustained demand for AI infrastructure.
Analysts, however, noted growing concern over the circular nature of recent AI-related investments and partnerships, warning that valuations across the tech sector remain stretched. Still, market sentiment toward the AI theme remains overwhelmingly positive heading into the third-quarter earnings season, which begins next week.
Washington Stalemate and Economic Data Drought
Investor attention also remains fixed on Washington, where a federal government shutdown has entered its second week, delaying the release of several key economic indicators.
The lack of fresh data has forced traders to rely on alternative and private-sector measures of economic health, which so far have pointed to a slower labor market and sticky inflation.
Analysts said that until official data resumes, the AI boom and interest rate expectations will likely dominate near-term trading dynamics.
Powell’s Remarks and Fed Minutes in Focus
Markets are bracing for Powell’s pre-recorded remarks at a policy conference later today.
Investors will closely parse his tone for any signs of a hawkish pivot, which could temper expectations for further rate cuts.
Other Fed officials, including Vice Chair Michelle Bowman and Governor Michael Barr, are also slated to speak, though analysts doubt they will offer new insights given the ongoing data blackout.
Minutes from the Federal Open Market Committee’s September meeting, released Wednesday, showed a divided Fed:
- Most officials agreed that further easing is warranted this year to counter labor market weakness.
- Several policymakers, however, favored a slower pace of cuts due to persistent inflation risks.
Economists at Capital Economics said the minutes reinforced expectations that the Fed aims to bring rates toward a “neutral setting”, where policy neither stimulates nor restrains growth. Still, they anticipate a slower pace of rate reductions than markets currently expect.
Outlook
With AI optimism continuing to offset macroeconomic uncertainty, analysts expect markets to trade sideways until Powell’s comments offer more clarity on the Fed’s trajectory.
Volatility could rise in the coming weeks as investors digest early third-quarter earnings and the potential impact of the government shutdown on corporate outlooks.
