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U.S. equity futures edged higher in early Tuesday trading, following on from the longest Wall Street winning streak since November, as investors continue to ride the market’s August recovery amid fading recession bets and the prospect of Federal Reserve rate cuts.
Stocks extended their recent winning streak to an eighth consecutive session last night, with the S&P 500 rising 0.97% to take the benchmark to within just 1.05% of the all-time high it printed on July 16.
Stronger-than-expected data on consumer spending, job creation and business activity has all combined to drive bets that the economy will avoid recession between now and the end of the year, with traders anticipating quarter point rate cuts from the Fed at each of its three upcoming meetings.
The S&P 500 has rallied from its early August low to withing just 1.05% of its recent record high.
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Treasury bond yields are reflecting those bets, as well, with rate-sensitive 2-year notes holding at 4.057% and benchmark 10-year note yields pegged at 3.873% heading into the start of the New York trading session.
The U.S. dollar index, which tracks the greenback against a basket of six global currency peers, was marked 0.05% lower at 101.832, the lowest since late December.
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On Wall Street, stocks look set for a muted open, with futures contracts tied to the S&P 500 indicating a modest 3 point advance while those linked to the Dow Jones Industrial Average are priced for a 9 point decline. The tech-focused Nasdaq, meanwhile, is called 23 points higher.
Stock on the move include Lowe’s Companies (LOW) , which slipped 0.1% after the home improvement retailer cut its full-year profit forecast following a stronger-than-expected second quarter earning report.
Boeing (BA) shares fell 0.9% after the planemaker paused test flights of its 777-9 jet after finding structural issues with a component during maintenance checks.
Palo Alto Networks (PANW) , meanwhile, jumped 2.22% after the cybersecurity group topped Street earnings forecasts and lifted its 2024 profit forecast as the group looks to benefit from the fallout from CrowdStrike’s (CRWD) software update chaos.
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In Europe, stocks were largely tracking U.S. futures with the Stoxx 600 slipping 0.09% despite dovish comments on rate cuts from ECB Governing Council member Olli Rehn and Britain’s FTSE 100 down 0.68% in London.
Overnight in Asia, the Nikkei 225 rose 1.8% on the session in a follow-on move from last night’s rally on Wall Street, while the regional MSCI ex-Japan benchmark edged 0.32% higher into the close of trading.
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