US Stocks Aim for New Record Highs
On Thursday, US stocks were set to push towards new record highs after the Federal Reserve lowered interest rates for the first time this year, indicating that additional cuts may follow in the coming months.
Market Trends
Futures for the Dow Jones Industrial Average (YM=F) rose by 0.6%, while S&P 500 (ES=F) futures increased by approximately 0.8%. The tech-focused Nasdaq 100 (NQ=F) led the gains, climbing nearly 1%.
Market Reactions
Stocks are eyeing fresh highs after recently retreating from records while waiting for the Fed to confirm expectations for easing. Should premarket gains hold, the S&P 500 ^GSPC will open above 6,700, marking an increase after closing above 6,600 for the first time on Monday. Notably, the three main US indexes have risen in September, defying the historical trend of this month being challenging for stocks.
Investors’ Sentiment
Markets are shaking off initial hesitancies that weighed on stocks following the Fed’s quarter-point rate cut on Wednesday. Fed Chair Jerome Powell’s acknowledgment of high inflation and a struggling labor market created doubts, despite the “dot plot” indicating potential future cuts in 2025.
Job Market Insights
Investors are looking forward to more information about the job market, with weekly jobless claims figures scheduled for release on Thursday.
Corporate Highlights
On the corporate side, FedEx FDX is set to announce its quarterly results after market close. Analysts predict the delivery company will experience a decline in profits due to President Trump’s termination of the “de minimus” tariff exemption for low-value packages from China and Hong Kong, which constitute about three-quarters of duty-free shipments under $800 to the US annually.
Political Developments
President Trump is visiting the UK, where he has met with tech and finance leaders at Windsor Castle. On Thursday, he and Prime Minister Keir Starmer will discuss strengthening partnerships in tech, energy, and digital assets, particularly focusing on enhancing AI collaboration with investments from Microsoft MSFT and Nvidia NVDA.
