U.S. stock futures rose on Friday, with the Dow eyeing a third straight record high as the prospect of deeper and earlier interest rate cuts continued to lift sentiment.
Dow Jones Industrial Average (^DJI) futures rose 0.3%, or about 100 points, after the blue-chip index closed at a new all-time high on Thursday. Futures on the S&P 500 (^GSPC) rose 0.2%, while those on the tech-heavy Nasdaq 100 (^NDX) rose 0.3%.
Markets cheered the Federal Reserve's surprise change of tone toward easing this week as it announced further interest rate cuts in 2024 and acknowledged that its anti-inflation campaign is gaining momentum. This has contributed to a record-breaking rally in US stocks, with major indexes posting six straight winning sessions.
Read more: What the Fed's pause on rate hikes means for bank accounts, CDs, loans and credit cards
But the exuberant sentiment may be starting to fade as some observers warn that markets may be getting ahead of themselves. And unlike the Fed, central banks in Europe have discouraged hopes of easing monetary policy.
Meanwhile, about $5 trillion in U.S. stock options are expiring on Friday, 80% of which are contracts tied to the S&P 500. Some analysts believe the largest such runoff in at least 20 years could stave off a decline.
Elsewhere, oil prices rose, on track for its first weekly gain since October, boosted by a Fed-induced decline in the dollar. West Texas Intermediate (CL=F) futures traded at nearly $72 a barrel, while Brent Crude Oil futures (BZ=F) changed hands at around $77 a barrel, having risen by more than in the previous two sessions had risen 4%.
Live1 update
Fri, December 15, 2023 at 11:47 a.m. GMTProduction is characterized by a sparse schedule
A preliminary look at December manufacturing data shows a relatively quiet economic and corporate calendar on Friday.
Economists expect S&P Global's first look at manufacturing and services sector activity released Friday morning to show activity in manufacturing continuing to contract and service sector activity increasing moderately this month.
On the corporate side, Darden Restaurants' (DRI) results should serve as a long noteworthy highlight.
Fri, December 15, 2023 at 11:47 a.m. GMTClick here for a detailed analysis of the latest stock market news and events affecting stock prices.
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