US Stocks Set to Soar on Fed Policy Outlook
US stock index futures rose as investors anticipated another interest rate cut at the Federal Reserve’s final meeting of the year and ahead of a busy week of economic data.
Contracts on the S&P 500 Index rose 0.2% as of 5:24 a.m. in New York, while futures on the tech-heavy Nasdaq 100 rose 0.3%
MicroStrategy Inc., Palantir Technologies and Axon Enterprise advanced in premarket trading after the announcement that the stocks would be added to the Nasdaq 100 in the index’s annual restructuring.
Bitcoin rose to a record high on President-elect Donald Trump’s support for digital assets and optimism about MicroStrategy’s inclusion.
The Fed is poised to cut interest rates by a quarter point on Wednesday, but the dawn of 2025 and the prospect of inflationary import tariffs proposed by the incoming Trump administration could make officials rethink the pace of the move.
The uncertainty has so far failed to dampen optimism about U.S. equities, with the S&P 500 up 27% so far this year as the economy remains strong and advances in artificial intelligence continue to lift big names.
Source: Bloomberg
