US election news on a screen on the floor of the New York Stock Exchange (NYSE) in New York, US, on Wednesday, Nov. 6, 2024.
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Stock futures are near flat Wednesday night after a huge market rally following Donald Trump’s decisive victory in the presidential election. Traders are awaiting the Federal Reserve interest rate decision Thursday afternoon.
Futures tied to the Dow Jones Industrial Average added 25 points, or 0.1%. S&P 500 futures and Nasdaq 100 futures both traded marginally above flat.
Trump’s triumph in the race for the White House spurred a surge in stocks that sent the blue-chip Dow soaring by more than 1,500 points. The Dow, S&P 500 and Nasdaq Composite all notched new all-time highs in the session, while the small cap-focused Russell 2000 jumped more than 5%.
Bitcoin, the U.S. dollar and bank stocks all jumped as part of Wednesday’s post-election advance. On the other hand, several international funds and solar stocks struggled as investors expected the President-elect’s policies to hurt these names.
“The results are in and the financial markets can breathe a little easier without concern over a prolonged election process,” said Scott Helfstein, head of investment strategy at Global X ETFs. “Investors should still be cautious about over- and underreaction to geopolitical news. These events can typically cause large swings in asset prices, but fundamentals will win out over time.”
Market participants on Thursday will closely monitor the Federal Reserve’s interest rate decision and Chair Jerome Powell’s subsequent press conference. Fed funds futures are currently pricing in a 100% likelihood that the central bank lowers the borrowing cost at this gathering, according to CME Group’s Fed Watch tool.
That would mark a second straight cut after the Fed’s decrease in September, which was its first since 2020. Before the afternoon announcement, traders will follow economic data on jobless claims and wholesale inventories.
Quarterly earnings are on deck for Moderna and Warner Bros. Discovery before the bell Thursday. Results for Block, Pinterest and Rivian are due in the afternoon.
