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Stock index futures rise as Fed hike expectations cool

CME FedWatch data showed the probability of an October Fed rate hike falling to about 45%, down from 70.9% the prior day.

Reported · Written up by our desk · Futures

US stock index futures moved higher during European trading, with Dow Jones futures up 0.39% to around 51,890, S&P 500 futures gaining 0.23% to about 7,750, and Nasdaq 100 futures rising 0.17% to roughly 30,660, according to FXStreet.

The advance followed a drop in expectations for additional Federal Reserve rate hikes after remarks from New York Fed President John Williams, who said there is no need for urgency after the September meeting even though another increase later this year could be appropriate if the economy evolves as projected.

FXStreet reported that markets adjusted quickly to the guidance, with the CME FedWatch Tool indicating the chance of an October rate hike fell sharply to about 45%, from 70.9% a day earlier.

Investors are now looking to Wednesday’s Personal Consumption Expenditures (PCE) inflation index, before turning to Friday’s Nonfarm Payrolls data, as US Treasury yields pulled back after earlier multi-decade highs.

Latest closeS&P 500 7,683.69 ▼0.8%|Nasdaq Comp. 26,820.38 ▼0.9%|Dow Jones 51,481.51 ▼0.7%

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