Market Overview

Dow Set for Eighth Straight Day of Gains as Rate Cut Hopes Grow

Investors Await Fed Speakers for Insight on Interest Rate Outlook

U.S. stock futures rose on Friday, setting the stage for the Dow Jones Industrial Average (YM) to potentially secure its eighth consecutive day of gains. As investors eagerly await a series of speeches from Federal Reserve officials, a growing confidence that a rate cut is on the horizon has fueled the recent market rally.

Dow, S&P 500, and Nasdaq Futures Climb Higher

Dow futures have rallied 4.6% YTD, while E-mini S&P 500 (ES) futures have also gained 9.7% on the heels of closing above 5,200 for the first time in a month. Contracts on the tech-heavy Nasdaq 100 (NQ) are up 9.21% for the year. All indexes are up this year, with the DOW lagging slightly, as you can see on the chart below.

ES futures, NQ futures and dow YM futures performance YTD

Blue-Chip Dow Powers Higher Amid Rate Cut Expectations

The blue-chip Dow has been on a remarkable run, scoring its longest win streak this year as stocks made a comeback from April’s doldrums. The growing conviction that the Federal Reserve could cut interest rates earlier than expected, given recent signs of a cooling labor market, has buoyed the rally and renewed investor optimism. YM futures have now closed 8 straight sessions in the green.

YM Dow Jones futures up * straight sessions.

What Now?

Investors Await Clarity on Fed’s Next Moves

As the Dow, S&P 500, and Nasdaq continue to climb, driven by expectations of a potential rate cut, all eyes will be on the next move for the Fed. With the market’s appetite for risk seemingly on the rise, the Fed’s guidance will be crucial in shaping the near-term outlook for U.S. stocks.

Are you taking long positions? What does the remainder of this year have in store for us?