Stock futures rose Tuesday, the first day of November. That’s as Wall Street tries to step into last month’s sharp rise, ahead of the Federal Reserve’s key decision on interest rates.
Futures tracking the Dow Jones Industrial Average rose 202 points, or 0.6%. S&P 500 and Nasdaq 100 futures were up 0.9% and 1.1% respectively.
The rally in stock futures came as interest rates fell ahead of the Federal Reserve’s rate decision as investors hoped the central bank would ease its tightening stance in the coming months. rice field. Strong reporting from Pfizer on Tuesday continued a better earnings season than feared. Uber’s stock price jumped as earnings grew.
Some traders also pointed to optimism from unconfirmed reports that China may be moving away from its zero-Covid policy as the source of Tuesday’s early rise.
Vital Knowledge’s Adam Crisafri said, “Stocks have been in a tailspin following last night’s unconfirmed social media reports that China is planning to end its ‘zero tolerance’ approach to the novel coronavirus. are trading well.
“Although the consensus narrative embraces the ‘Fed will slow its pace of tightening’ narrative, China remains one of the most hated markets on the planet, and its stock index has been on the decline for decades. It is at its lowest level and there is still plenty of room to recover upwards “in the coming quarters, provided a more realistic COVID approach is implemented,” he added.
Wall Street on Monday capped off a strong month of gains, with the Dow up nearly 14% in its biggest monthly gain since January 1976. The S&P 500 and Nasdaq Composite were up about 8% and 3.9% respectively.
Tuesday also marks the start of the Fed’s November meeting, which many market participants expect will result in a rate hike of 75 basis points. Many look to the central bank statement and his Fed Chairman Jerome Powell’s Q&A segment for clues on the policymaker’s fight against inflation.
Investors will also be on the lookout for Tuesday’s economic announcements, including job openings data and construction spending for September and the ISM manufacturing report for October.