US pre-open: Futures trade higher following Dow's record close

23rd Sep 2024 11:10

(Sharecast News) - Wall Street futures were trading higher ahead of the bell on Monday as the Dow Jones Industrial Average looks set to build on its record close.

As of 1240 BST, Dow Jones futures were up 0.06%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.13% and 0.19% firmer, respectively.

The Dow closed 38.17 points higher on Friday, extending the blue-chip's FOMC interest rate decision-fuelled rally for another session.

Monday morning's early moves follow the Fed's decision to cut benchmark overnight interest rates by 50 basis points, using its first cut in four years to take investors, who had broadly expected a more restrained 25 basis point cut, largely by surprise.

Trade Nation's David Morrison said: " Fed Chair Jerome Powell will deliver a speech on Thursday. It will be interesting if the addresses the fact that the central bank continues to reduce its balance sheet, thereby tightening monetary policy, while simultaneously easing it through rate cuts. Previously, Mr Powell has said that the two cycles should be considered independent of one another. But that was when it was a hypothetical. Does that hold true now that its actually happening? US stock index futures are on the front foot in early trade, with both the Dow and S&P trading at, or near, their respective all-time highs."

On the macro front, a preliminary reading of S&P Global's manufacturing and services PMIs were slated for release at 1445 BST, while Federal Reserve bankers Raphael Bostic, Austan Goolsbee and Neel Kashkari will deliver speeches at 1300 BST, 1515 BST and 1800 BST, respectively.

In the corporate space, chipmaker Qualcomm has reportedly approached Intel about a potential takeover, with the latter's CEO, Cristiano Amon, said to be involved in the talks.

Reporting by Iain Gilbert at Sharecast.com