In the pre-market trading on Friday, U.S. index futures are slightly up, signaling new record highs. This momentum is an extension of the recovery that began with the Federal Reserve’s recent decision on Wednesday. With this advance, the three major indexes are on track to record their best weekly performance of the year 2024.
At 07:01 AM, Dow Jones futures (DOWI:DJI) rose 47 points, or 0.12%. S&P 500 futures advanced 0.13%, and Nasdaq-100 futures gained 0.08%. The yield on the 10-year Treasury bonds was at 4.243%.
In the commodities market, West Texas Intermediate crude oil for May rose 0.20%, to $81.23 per barrel. Brent crude for May went up by 0.14%, to around $85.90 per barrel. Iron ore traded on the Dalian exchange increased by 1.50%, to $116.78 per metric ton.
On the economic calendar this Friday, investors are awaiting the “Fed Listens: Transitioning to the Post-pandemic Economy” event, which will be opened at 09 AM by the Federal Reserve Chairman. Jerome Powell will comment on the outlook for economic conditions and how the pandemic experience has reshaped the economy and workforce.
Asian markets closed mixed, marked by declines in China and Hong Kong, contrasting with the historic performance of Japan’s Nikkei index. The Shanghai Composite in China recorded a drop of 0.95%, reflecting tension prior to the revelation of crucial data on the country’s industrial and economic performance. The Hang Seng in Hong Kong suffered even more, declining 2.16%. On the other hand, in Tokyo, the Nikkei celebrated a new high, rising by 0.18% after the Bank of Japan’s decision on Tuesday to raise interest rates for the first time in almost two decades, while still reiterating its commitment to flexible monetary policy.
European markets show a mixed trend today, following the momentum after several exchanges recorded historic highs in the previous session. While the UK’s FTSE 100 index is advancing, France’s CAC 40 index is slightly retreating. This scenario comes in the wake of a series of crucial interest rate decisions recently announced. Unexpectedly, the Swiss National Bank announced on Thursday a cut of 0.25 percentage points in its interest rate, adjusting it to 1.5%. Concurrently, the Bank of England opted to keep rates steady but indicated the possibility of future cuts in light of a faster-than-anticipated drop in inflation. Meanwhile, Norway’s central bank decided not to change its reference rate but anticipated a reduction in borrowing costs scheduled for the end of the year.
On Thursday, U.S. stocks started the day higher, buoyed by the positive reaction to the Fed’s monetary policy but lost momentum over the session. The Fed’s decision to maintain interest rates and the expectation of future cuts fueled optimism, even amid recent inflationary concerns. Stocks closed at new record highs: The Dow Jones rose 0.68% to 39,781.37, the S&P 500 gained 0.32% to 5,241.53, and the Nasdaq advanced 0.20% to 16,401.84.