(Reuters) – U.S. stock index futures rose on Thursday after the latest economic report indicated the need for interest rate cuts by the Federal Reserve, but investors looked to more data for timing clues. We were looking forward to comments from policymakers.
The S&P 500 slumped on Wednesday after data showed growth in the U.S. services industry slowed further in March and as market participants appreciated comments from Fed officials, including Chairman Jerome Powell. The Nasdaq closed higher.
While policymakers generally agree on the possibility of a rate cut this year, Powell said the rate cut reflects “more confidence that inflation is falling sustainably” toward the Fed's 2% target. “Only in certain cases.”
“What Mr. Powell has to say is important,” Kathleen Brooks, research director at XTB, said in a note. “Even with surprisingly positive inflation and labor market data, the prospect of a rate cut remains.” Ta.
Mixed reports on economic trends have made investors cautious about the timing of rate cuts.
Stocks fell at the start of the week on some positive economic reports, including manufacturing activity and jobs data that called into question three interest rate cuts that are widely priced in this year.
Money markets now see a nearly 59% chance of a rate cut of at least 25 basis points in June, according to CME Group's FedWatch tool.
For further clues about monetary policy, the focus will also be on voting Fed policymakers such as Richmond Fed President Thomas Barkin and Cleveland Fed President Loretta Mester.
On the data front, ahead of Friday's key non-farm payrolls release, markets will focus on new jobless claims for the week ending March 30, to be released at 8:30 a.m. ET. .
As of 5:35 a.m. ET, the S&P 500 E-mini was up 16.5 points, or 0.31%, with 80,353 contracts changing hands. The Nasdaq 100 E-mini rose 82.75 points (0.45%) and the Dow E-mini rose 111 points. or 0.28%
Some large-cap growth stocks rose modestly in premarket trading, with Metaplatforms Inc., Amazon.com Inc. and Nvidia Inc. up 0.5% to 1.3%.
Among individual stocks, Levi Strauss rose 8.3% after the apparel maker raised its full-year profit forecast, citing savings from recent cost-cutting measures and fewer discounts.
Micron Technology rose 1.1% to close at a record high after rising about 4.3% in the previous session.
(Reporting by Shristi Achar A in Bengaluru; Editing by Anil D'Silva)