Stock Futures in The US Increased Cautiously
Stock futures in the United States rose cautiously ahead of a shortened trading session.
Dow Jones Industrial Average futures rose 77 points or 0.23%. S&P 500 futures rose 0.13%, while Nasdaq 100 futures fell 0.21%, weighed down by Activision Blizzard shares.
Wall Street is set to end an upbeat holiday-shortened week after the Federal Reserve’s latest meeting minutes added to expectations that monetary policy tightening may slow.
According to the Fed’s November meeting minutes, the central bank is progressing in combating high inflation and intends to slow rate hikes. Stocks rose on the news, marking the second day of gains in a row in a week marked by choppy trading and low volumes.
A large majority of participants believed that a slowing in the rate of increase would be appropriate soon.
According to Bespoke Investment Group, the Dow’s steady recovery has reached a critical technical level.
Bespoke said in a tweet on Friday that the Dow is 9.1101% above its 50-day moving average. This is the highest since June 2020 and only the eighth since 1990 that it has been at least 9.01% higher than the moving average.
One benchmark that traders use to forecast short-term market movements is the 50-day moving average. When an average is above its moving average, it may indicate that it has become overbought.
Stocks rose for the fourth day. It pushed the benchmark index above 6,600, hoping the US Federal Reserve will ease up on its monetary tightening.
The Philippine Stock Exchange’s 30-company benchmark, the PSE index, rose 76 points, or 1.2 percent, to 6,606.94 on Friday. Meantime, five of the six subsectors advanced.
The broader all-share index rose 30 points, or 0.9 percent, to 3,452.44 on a P7.1 billion value turnover. Advancers outnumbered decliners 100 to 69, with 42 issues remaining unchanged.
The mood in markets improved this month as several indicators suggested that the world’s largest economy, the United States, showed signs of weakness after the Fed raised interest rates.