SPY - S&P 500 Nasdaq Futures Rise On Euphoria Over Fed's Dovish Pivot: Small Caps Set For Another Cheery Session | Benzinga
The Federal Reserve-induced rally appears set to continue, with the stock futures firmly in the green early Thursday. The small-cap party may have started following the group’s relative underperformance for much of the year. Traders may look ahead to the economic report on jobless claims and retail sales as well as earnings reports from a handful of companies to confirm the soft-landing scenario implied by the Fed.
It is more likely that the major averages go about a consolidation move as they take a breather after the recent five-session run-up.
Cues From Previous Session:
Stocks rallied hard on Wednesday after the Federal Reserve implied a median of three rate cuts next year in their summary of economic projections. The pivot of the central bank to a markedly dovish stance helped the averages shoot higher after the release of the monetary policy statement and the summary of economic projections.
Fed Chair Jerome Powell did not upset the market’s apple cart by confirming the dovishness and buying continued amid his press conference and into the market close.
All three major averages ended higher for a fifth straight session, with the 30-stock Dow Industrials Average ending at a record high. The Nasdaq Composite and the S&P 500 Index ended at their highest levels since Jan. 14, 2022, and Jan. 12, 2022, respectively.
US Index Performance On Wednesday
Index Performance (+/-) Value
Nasdaq Composite +1.38% 14,733.96
S&P 500 Index +1.37% 4,707.09
Dow Industrials +1.40% 37,090.24
Russell 2000 +3.52% 1,947.51
Analyst Color:
Despite the euphoria over the Fed’s pivot to a dovish stance, investors may be better off ...