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The
S&P 500 and the Nasdaq extended gains to an eighth straight
session on Monday, their longest winning streak so far this
year.
Recent data has shown a still-healthy consumer despite softening
of economic conditions, boosting expectations that the Fed will
start easing its monetary policy when it meets in September.
Traders currently see a 75.5% chance of the Fed cutting interest
rates by 25 basis points (bps) in September, compared to a near
even split between a 50 and 25 bps cut seen a week ago,
according to the CME FedWatch Tool.
As per a slim majority of economists polled by Reuters, the U.S.
central bank will cut interest rates by 25 bps at each of the
remaining three meetings of 2024, one more reduction than
predicted last month.
Achilleas Georgolopoulos, an investment analyst at forex broker
XM, however, sounded a note of caution.
"(The) forecasts are relatively aggressive considering the state
of the U.S. economy and potentially reveal analysts'
expectations that Chairman Powell will be relatively dovish at
the Jackson Hole Symposium," Georgolopoulos said.
"This is probably the main market scenario currently priced in,
which increases the possibility of an acute market reaction if
Powell repeats his balanced view and fails to appear dovish."
Chair Powell will deliver a speech at the economic symposium in
Jackson Hole on Friday, which will be parsed for any signs of
acknowledgement of a rate cut in September.
Atlanta Fed chief Raphael Bostic and Fed Vice Chair for
Supervision Michael Barr will speak later on Tuesday. Minutes
from the Fed's last policy meeting are due on Wednesday.
At 05:15 a.m. ET, Dow E-minis were up 3 points, or 0.01%, S&P
500 E-minis were up 3.75 points, or 0.07% and Nasdaq 100 E-minis
were up 25.75 points, or 0.13%.
Among individual stocks, Palo Alto Networks gained 2.1% in
premarket trading after the company forecast fiscal 2025 revenue
and profit above estimates, a sign of growing demand for its
cybersecurity products as the digital threat landscape evolves.
Cryptocurrency and blockchain-related stocks firmed as bitcoin
rose 3.1%. Exchange operator Coinbase Global gained 2.1% and
miner Riot Platforms was up 2.7%.
Bitcoin buyer MicroStrategy added 3% and ProShares Bitcoin
Strategy ETF advanced 3.4%.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by
Saumyadeb Chakrabarty)
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