U.S. market futures rise slightly as interest rate-driven turmoil ease
US stock index futures rose slightly on Tuesday evening, indicating that Wall Street is stabilizing after a series of significant declines due to expected long-term interest rate hikes.
US stock index futures rose slightly on Tuesday evening, indicating that Wall Street is stabilizing after a series of significant declines due to expected long-term interest rate hikes.
However, risk appetite remains weak, especially as tensions in the Middle East continue and senior Federal Reserve officials reiterate the central bank's forecast for stable interest rates.
As of 19:37 ET (23:37 GMT), S&P 500 index futures rose 0.2% to 5,103 points, and Nasdaq 100 index futures rose 0.2% to 17,924.5 points. The Dow Jones index futures rose 0.2% to 38,125 points.Powell hinted at a weakening of confidence in interest rate cuts, causing Wall Street to close volatile.
On Tuesday, the Wall Street index closed flat, with some optimistic profits partially offset by warnings from Federal Reserve Chairman Powell. He warned that the recent signs of sticky inflation have weakened the confidence of the central bank to quickly cut interest rates.
Powell's speech came after the March inflation and retail sales data exceeded expectations, indicating that inflation may continue to be much higher than the Federal Reserve's target level. This has also led to the elimination of market expectations for a rate cut in June.
The S&P 500 index fell 0.2% to 5,051.41 points, while the Nasdaq Composite Index fell 0.1% to 15,865.25 points. The Dow Jones Industrial Average rose 0.2% to 37,798.97 points, led by United Health Group, which performed well in first quarter profits.
Due to Iran's drone and missile attacks on Israel, the Middle East crisis has intensified and the market has been shaken.
On Tuesday, the rise of major technology companies provided some help to Wall Street. Microsoft, as one of the largest stocks on Wall Street, rose 0.2% after announcing an investment of $1.5 billion in Abu Dhabi artificial intelligence company G42. Microsoft also rose 0.4% in post market trading. Driven by this news, other stocks related to artificial intelligence also rose, with Nvidia rising 0.6% in after-sales trading after rising 1.6% on the trading day.
Some good company financial reports have also boosted the market's optimism. Morgan Stanley rose 0.2% in afternoon trading after announcing higher than expected quarterly profits.
United Health Group rose 0.2% after releasing outstanding quarterly results. On Wednesday, Dutch chip manufacturer ASML and medical giant Abbott Laboratories will release financial reports.
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