U.S. stock index futures were higher Thursday morning as Wall Street’s rally on hopes of a rate cut from the Federal Reserve looked set to continue.
At around 6:30 a.m. ET, Dow futures indicated a positive open of around 80 points, while futures for the S&P 500 and Nasdaq also ticked higher.
Comments from Fed Chair Jerome Powell on Tuesday further fueled expectations that the U.S. central bank is moving closer to cutting interest rates, causing U.S. stocks to surge. The Dow Jones Industrial Average jumped more than 500 points on Tuesday, its second best day of the year, and continued its rally into Wednesday.
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Powell said that the central bank will keep an eye on current developments in the economy, and would do what it must to “sustain the expansion.”
Markets will be monitoring ongoing global trade tensions, however, particularly the threat from President Donald Trump to impose a 5% tariff on all Mexican imports, in a political ploy criticized even by members of his own party.
Trump ratcheted up tensions with China Thursday, telling reporters at the Irish airport of Shannon Thursday that tariffs on Chinese goods could be raised by another $300 billion if necessary. The president was on his way to France for a D-Day commemoration.
On the data front, weekly jobless claims, revised first-quarter productivity and unit labor cost figures are expected at 8.30 a.m. ET, along with April’s international trade figures.
Investors will also be keeping an eye on the European Central Bank, which is set to announce its latest monetary policy decision Thursday.
Back in the U.S., New York Fed President John Williams will be speaking to CNBC’s Steve Liesman at the Council on Foreign Relations’ C. Peter McColough Series on International Economics Thursday afternoon.
In corporate news, JM Smucker and Vail Resorts are expected to report earnings before the bell.
Both Beyond Meat and Zoom Video are set to issue their first earnings reports since their respective initial public offerings after the market close.
Source: cnbc.com | Original Link