US stock futures rose on Wednesday amid rising bets on interest-rate cuts, with the next wave of earnings reports on deck following a volatile day on Wall Street.
Dow Jones Industrial Average futures (YM=F) moved up 0.3%. Meanwhile, contracts on the S&P 500 (ES=F) and tech-heavy Nasdaq 100 (NQ=F) added 0.4% and 0.5% respectively.
Comments from Jerome Powell are boosting market spirits in the face of US-China trade friction and a US government shutdown with no end in sight. The Federal Reserve Chair said Wednesday that “downside risks to employment appear to have risen,” implying more rate cuts are on the cards.
Wall Street drank in Powell’s remarks, given its hunger for insight into the economy as the federal stoppage delays the release of key data. No major reports are expected on Wednesday.
It has also intensified focus on earnings season. Reports from Bank of America (BAC), Morgan Stanley (MS) will add to the picture painted by the likes of JPMorgan on Tuesday, while PNC Financial (PNC) and Abbott Laboratories (ABT), are also on the docket before the opening bell.
Tuesday was a rocky day for markets as trade tensions between Washington and Beijing intensified. President Donald Trump said he was considering imposing new trade restrictions on China because the country isn’t purchasing soybeans from the US. The threat follows China’s fresh sanctions on five US subsidiaries of South Korean shipbuilder Hanwha.
Meanwhile, the White House is preparing for the government shutdown to drag on. Trump said he would release a list of federal programs earmarked for cuts this week, and the White House budget office is scrambling to find ways to pay military members and law enforcement.
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