U.S. stock futures rose on Wednesday with worries over Middle East conflict on the backburner amid optimism that the Federal Reserve is done raising interest rates. Inflation data and minutes from the last Fed meeting could advance the narrative.
Futures for the Dow Jones Industrial Average gained 40 points, or 0.1%, after the index advanced 134 points on Tuesday to finish at 33,739. S&P 500 futures lifted 0.1% with contracts tracking the tech-heavy Nasdaq up 0.2%.
The major indexes were on track for their fourth straight day of gains as investors continued to look past geopolitical risks from Israel’s declaration of war on Hamas after unprecedented violence from Gaza over the weekend. The narrative has shifted back to the outlook for interest rates and inflation, themes that have dominated for months.
“Despite the ongoing geopolitical turmoil, markets have surged so far this week,” said Jim Reid, a strategist at Deutsche Bank. “Global markets rally on easing U.S. rate worries and stability in crude oil prices.”
Producer-price index (PPI) inflation data and minutes from the latest Fed meeting loom in the day ahead as catalysts that could shift the needle on expectations about whether or not the central bank is likely to raise rates again in November or December.
