US stock futures saw gains on Wednesday, with the S&P 500 contract climbing 0.5%, the Dow Jones contract gaining around 90 points, and the Nasdaq 100 contract rising almost 0.7%
London, 14 February 2024
Following a day in which the three major averages dropped over 1% due to a US inflation report that was stronger than anticipated, which reduced expectations that the Fed would soon decrease interest rates, futures were indicating a rebound. The chances of the fed funds rate cutting by 25 basis points in May fell to roughly 35%, and the chances for June have now increased to over 51%. Rate-sensitive megacaps had a comeback in premarket trade, with companies like Microsoft, Apple, NVIDIA, Amazon, and Meta seeing gains.
Even after the firm fixed a typo on their earnings projection margin, Lyft's shares surged almost 21% in premarket trading as the earnings season continued. Conversely, Airbnb had a decline of more than 4% due to its inability to convince investors with its profitability, revenue, and share buyback programme. Following the closing bell, Cisco Systems is scheduled to release its quarterly results as well.
Forecast
The US 500, the primary stock market index, has risen 210 points, or 4.41%, since the start of 2024, based on trading on a contract for difference (CFD) that mirrors this benchmark index from the US. By the end of the current quarter, analysts and global macro models at Trading Economics predict that the US S&P Index will trade at 4961.29 points. In the future, they predict that it will trade at 4789.10 in a year. Source: Trading Economics