Dow Futures Gain 60 Points Ahead Of Non Manufacturing Pmi Data

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Dow Futures Gain 60 Points Ahead Of Non Manufacturing Pmi Data

Dow Futures Gain 60 Points Ahead Of Non-Manufacturing PMI Data

The majority of the US stocks are in green during the Friday session. In fact, most of them are on track to close this week on a positive note. Looking ahead, we will get to hear the speeches from Fed policymakers as well as non-manufacturing PMI data.

The Dow futures contract is already up by 60 points (0.2%), and the S&P 500 futures are up by 12 points (0.3%). Similarly, the Nasdaq 100 futures are by 45 points (0.4%).

Fed Speaker Raphael Forecasts 25 BPS Rate Hike

The major indices of the USA also inched higher during the Thursday trading session due to Raphael Bostic's forecast of a 25 bps rate hike. He also hinted that the Fed would pause its rate hike policy somewhere around this summer.

The biggest advance for the day was the DJIA which gained 300 points (1.1%). If we look back, DJIA didn't have such a good day since the mid of February.

The tech-heavy Nasdaq didn't join the bullish party and was down by 0.7% for the day. However, the S&P 500 joined the other major indices and gained 0.8% of the day.

Overall, all the 3 US indices are set to record a bullish week which is boosting investors' optimism.

According to experts, another rate hike from the Fed is on the cards in the next meeting. Similarly, another rate hike in the May meeting is also highly anticipated. This comes at a time when the consumer price data is showing inflation is still way higher than normal levels.

We also have the US job report due in the next two weeks, but the main attention will be on the non-manufacturing PMI data due in a few days.

The December reading showed that we have entered into recession territory, and it also forced the Fed rate expectations to turn dovish. For the most part, the experts are pricing a small drop from 55.2 to around 54.5. This would mean that the talks of recession are still too early, and the Fed could continue its hawkish rhetoric.

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