Nasdaq Index, Dow Jones, S&P 500 News: Wall Street Soars on Fed Rate Cut Hints

Stock Futures Rising

Stock futures are climbing this morning, continuing their upward trend from yesterday. This rise is following the latest policy meeting of the Federal Reserve and notable movements in key stocks.

At 11:29 GMT, Dow futures are trading 40029.00, up 89.00 or +0.22%. S&P 500 Index futures are at 5306.25, up 19.50 or +0.37% and Nasdaq-100 Index futures are trading 18625.25, up 145.50 or +0.79%.

Significant Stock Developments

In the semiconductor industry, Micron Technology is seeing its shares surge over 17% in premarket trading, driven by earnings exceeding expectations. On the other hand, discount retailer Five Below is facing a decline, with its stock dropping more than 12% due to disappointing quarterly results.

Impact of the Federal Reserve

The Federal Reserve is playing a key role in shaping market sentiment. It is maintaining borrowing costs, following its March policy meeting, while signaling potential interest rate cuts. The central bank is projecting three reductions in rates this year, indicating support for the ongoing bull market.

Interest Rate and Economic Projections

Investors are currently assessing the U.S. Treasury yields, which are falling as they digest the Federal Reserve’s guidance on the future of interest rates. Fed Chairman Jerome Powell is expressing expectations of rate cuts, dependent on economic data, suggesting a possible easing of policy restraint within this year. The Fed’s ‘dot plot’ is showing projections of three rate cuts in 2025, a decrease from the December forecast.

Economic Data in Focus

Investors and traders are now looking out for important economic data, including weekly initial jobless claims and existing home sales conditions. Earnings reports from companies like Darden Restaurants, FedEx, and Nike are also under close watch.

Short-Term Market Forecast: Bullish

With the current trends, the market outlook is leaning bullish in the short term. Anticipated rate cuts by the Federal Reserve and positive earnings reports are likely to keep driving market confidence, unless unexpected economic disruptions occur.

Technical Analysis

E-mini Nasdaq-100 Index futures are higher on Thursday, hovering just below an all-time high at 18691.25. Taking out this level will reaffirm the uptrend.

On the downside, the major support remains the uptrending 50-day moving average at 18007.42. This MA has been controlling the intermediate trend since November 3 and is very imporant to the structure of this bull market.