Wall Street futures rose as bets on a Federal Reserve (Fed) interest rate cut in December strengthened again.
This development helped restore market sentiment after last week’s losses, while investors also watched for signs of recovery in previously hit technology stocks.
The futures gains were supported by positive remarks from Fed officials urging a rate cut in December, as well as mixed employment data that raised expectations for monetary easing.
The S&P 500 index rose 0.6% to 6,657.0 points, the Dow Jones increased 0.4% to 46,491.0 points, while the tech-focused Nasdaq surged 0.8% to 24,489.75 points.
Bets on a December rate cut surged again in the latest session after several dovish comments from Fed officials sparked last week’s recovery.
Several Fed officials expressed mixed and cautious views regarding a rate cut in December.
However, New York Fed President John Williams urged that a rate cut be implemented next month.
According to CME FedWatch, investors now see a 67.4% chance that the Fed will reduce rates by 25 basis points at the December 10-11 meeting, compared to 39.8% last week.
Attention now turns to several key economic data releases this week, as the United States government publishes statistics for September that were previously delayed due to the prolonged shutdown.
Producer Price Index (PPI) data, retail sales, and industrial production for September will be announced on Tuesday, while third-quarter Gross Domestic Product (GDP) figures will be released on Wednesday.
