Now that the twin inflation reports are in the rearview mirror, U.S. stocks are hanging onto the slender optimism as traders look ahead to the Federal Reserve’s rate-setting meeting. The numbers did little to belie expectations of a cut at next week’s meeting, although they did pour cold water on a bigger cut. The major index futures are little changed in early trading. Tidings from the tech sector has been mixed, potentially triggering caution amid the week’s runup.
A consumer sentiment report with a few forward inflation expectations readings could be on traders’ radar. Some profit-taking can not be ruled out as traders digest the week’s big gains.
Looking ahead to the Fed meeting, fund manager Louis Navellier said, “The Fed cut on Wednesday is the big news of the month.” “There may be some repositioning going in, but most of the action will come afterward, especially if there is a surprise 50bps cut,” he added.
Futures
Performance (+/-)
Nasdaq 100
+0.08%
S&P 500
+0.21%
Dow
+0.18%
R2K
+0.87%
In premarket trading on Friday, the SPDR S&P 500 ETF Trust (NYSE: SPY gained 0.25% to $560.48 and the Invesco QQQ ETF (NASDAQ: QQQ) rose 0.15% to $473.95, according to Benzinga Pro data.
Cues From Last Session:
Wall Street advanced on Thursday, thanks to a second-half recovery after stocks initially showed muted reaction to the fairly in-line August producer price inflation report and the weekly jobless claims data. After opening slightly higher, the major indices moved back and forth across the unchanged line in a narrow range in the morning session.
Sustained buying in technology stocks, especially those from the communications sector, and the rebound by energy stocks lifted the indices higher in the afternoon. The S&P 500 and the Nasdaq Composite indices closed higher for a fourth straight session, both ending at their highest level since Aug. 27.
The 30-stock, blue-chip Dow Industrials Average has advanced for a second straight day, ending at its best level ...
