The Fed's 50 basis-point interest-rate cut has been fully processed
Stock futures are ready to roll today, now that the U.S. Federal Reserve's surprise 50 basis point interest rate cut has been fully processed. Dow Jones Industrial Average (DJI) futures are indicating an over 400-point open, while Nasdaq futures are more than 2% higher as tech stocks rally. Adding fuel to today's fire and hope for a 'soft landing' is weekly jobless claims falling far below estimates.
Meanwhile, the Philadelphia Fed's manufacturing gauge moved back into growth territory with a 1.7 rise, showing improvement compared to analyst estimates of a 1.1 drop and last month's reading of -7.
Continue reading for more on today's market, including:
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw over 1.5 million call contracts and 921,802 put contracts exchanged on Wednesday. The single-session equity put/call ratio rose to 0.55 and the 21-day moving average remained at 0.65.
-
DoorDash Inc (NASDAQ:DASH) stock is 4.8% higher premarket after BTIG upgraded the food delivery company to “buy” from “neutral.” The analyst in coverage is encouraged by third-quarter growth signals. DASH is up 34% in 2024, thanks in large part to a 22% pop this quarter.
- Five Below Inc (NASDAQ:FIVE) stock is down 2.2% before the bell, after the retailer was downgraded by J.P. Morgan Securities to "underweight" from "neutral." The analyst in coverage sees 2025 labor cost headwinds. Year to date, the equity is down 53%.
- Shares of Alibaba Group Holding Ltd (NYSE:BABA) are up 4.1% in electronic trading, after the China-based e-commerce giant announced several updates, including the launch of over 100 open source artificial intelligence (AI) models. Since the start of 2024, the equity is up 9.8%.
- What's coming up this week on Wall Street today and tomorrow.
Stocks React to Inflation Data Overseas
Inflation data is flooding markets in Asia, with the Hong Kong Monetary Authority slashing rates by 50 basis points to 5.25%, similar to the U.S. Fed. Data is also expected out of the Bank of Japan (BoJ) tomorrow, with officials set to conclude a two-day policy meeting. For Thursday’s session, Japan’s Nikkei added 2.1%, Hong Kong’s Hang Seng surged 2%, China’s Shanghai Composite added 0.7%, and South Korea’s Kospi enjoyed a 0.2% lift.
Major indexes in Europe are also moving higher, with the Bank of England’s (BoE) decision to hold interest rates at 5% in focus. Retail stocks are also in rally mode, contributing to the London’s FTSE 100 1.1% gain, while France’s CAC 40 is up 2%, and Germany’s DAX was last seen 1.6% higher.