Dow futures climb after Fed chief signals a rate cut

U.S. stock index futures were higher on Thursday morning, on the back of fresh comments by Federal Reserve Chairman Jerome Powell.

Around 6 a.m. ET, Dow futures indicated a positive open of more than 70 points. Futures on the S&P and Nasdaq were both seen higher.

Wall Street ended Wednesday’s session seeing record highs after Powell hinted at easier monetary policy in the U.S.

In testimony to the House Financial Services Committee, Powell said business investments across the U.S. have slowed “notably” recently as uncertainties over the economic outlook linger. As a result, expectations of an upcoming rate cut grew.


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“Crosscurrents have reemerged,” Powell said. “Many FOMC participants saw that the case for a somewhat more accommodative monetary policy had strengthened. Since then, based on incoming data and other developments, it appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook.”

Traders are also pricing in a 100% probability of a rate cut before the end of July, according to the CME Group’s FedWatch tool.

On the data front, there will be weekly jobless claims and inflation figures out at 8:30 a.m. ET and federal budget numbers are due at 2 p.m.

In corporate news, Delta Air Lines is due to report earnings before the opening bell.

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