U.S. stock futures showed upward momentum on Thursday, indicating major indexes were poised to extend their recent record-setting performances.
Futures for the Dow Jones Industrial Average rose by 38 points, or 0.1%. Contracts linked to the S&P 500 climbed 0.4%, while futures for the Nasdaq 100, which focuses on technology stocks, surged 0.6%.
Investor sentiment remained positive following the Juneteenth holiday, despite weaker-than-expected retail sales figures released on Wednesday. These figures suggested a potential slowdown in consumer spending, signaling a broader economic deceleration that could prompt the Federal Reserve to consider interest rate cuts. Key employment data is scheduled for release later today, which could provide further insights into economic conditions.
James Knightley, chief international economist at ING, commented on the economic outlook:
“If we see more evidence of this consumer cooling, coupled with further rises in the unemployment rate and slower inflation, then a September rate cut will clearly be on the table for discussion. Should the Federal Reserve pull the trigger then we doubt very much they would stop at one cut.”
Meanwhile, bond yields saw slight increases early Thursday. The yield on the 10-year Treasury note was 4.258%, up from approximately 4.225% earlier in the week. Similarly, the two-year yield rose to 4.748% from 4.725%.
Market participants are closely monitoring these economic indicators and central bank signals for clues on future monetary policy actions amid evolving economic conditions.
This development underscores the ongoing resilience and optimism in financial markets as they continue to navigate shifting economic dynamics and potential policy responses.
