Wall Street is gearing up for another day of gains as U.S. stock futures point towards a green open on Thursday, following a robust post-election rally fueled by former President Donald Trump’s victory. The market’s positive sentiment is reflected in the upward movement of futures for all three major indices – Nasdaq 100, S&P 500, and Dow Jones.
Shares of Trump’s social media company, Trump Media & Technology Group Corp. (DJT), are likely to remain in the spotlight after experiencing a nearly 6% surge on Wednesday. In pre-market trading, the SPDR S&P 500 ETF Trust (SPY) has gained 0.22% to $592.42, and the Invesco QQQ ETF (QQQ) is up 0.26% to $506.87.
The euphoria from Wednesday’s election results, which saw Trump emerge victorious after a long battle with Joe Biden and Kamala Harris, continues to reverberate through the market. The Dow Jones index, in particular, experienced a dramatic surge of over 1,500 points, closing the day with a remarkable 3.6% gain.
While the stock market celebrates, oil prices continue to ease as Trump’s victory boosts expectations of a stronger U.S. dollar. Treasury yields, on the other hand, are on the rise, building upon the momentum generated by Wednesday’s prospect of a Trump presidency.
All eyes are now on the Federal Open Market Committee (FOMC) and Federal Reserve Chair Jerome Powell as investors eagerly await signals on the path of future rate decisions. The market anticipates a rate cut, with CME Group’s FedWatch tool indicating a 100% probability. Powell’s remarks during the press conference will be closely scrutinized for insights into the future trajectory of interest rate actions.
Beyond the Fed’s announcement, investors will also be paying attention to several key economic data releases scheduled for Thursday. Initial jobless claims data and preliminary productivity figures are due at 8:30 a.m. ET, followed by wholesale inventories data at 10 a.m. ET.
While the market celebrates Trump’s victory and awaits the Fed’s decision, several individual stocks are generating headlines. Trump Media & Technology Group Corp. (DJT) shares are experiencing a sharp decline of nearly 20% in pre-market trading. Lyft Inc. (LYFT), on the other hand, is surging over 22% after the ride-hailing company raised its outlook, fueled by a surge in sales and ridership. Qualcomm Inc. (QCOM) has exceeded Street expectations and extended its share buyback program, driving its shares up over 7% in pre-market trading. JPMorgan Chase & Co. (JPM) shares are under pressure after Baird downgraded the lender’s stock from neutral to sell.
Investors are also awaiting earnings results from The Hershey Company (HSY), Halliburton Company (HAL), and Block, Inc. (SQ).
In the commodity market, crude oil futures are dipping in the early New York session, falling by 0.92% as Trump’s return to the White House strengthens the U.S. dollar. Meanwhile, the 10-year Treasury note yield has surged to 4.433%.
Global equity markets are generally exhibiting strength. Asian markets closed Thursday on a positive note, with the exception of Japan’s Nikkei 225 index, which ended the day 0.25% lower. European stocks are demonstrating strength in early trading.
The post-election rally and the Fed’s upcoming rate decision are likely to continue shaping the market landscape in the coming days. Investors will be closely watching these developments and seeking to navigate the evolving market dynamics.
